Sri Lanka’s manufacturing activities continued to expand at a higher rate in August 2019, compared to July 2019.
This expansion in manufacturing sector was mainly attributable to the increase in production and new orders, especially in manufacturing of food & beverages and textiles & wearing apparel sectors to meet the upcoming festive season demand.
Further, Employment increased, yet at a slower rate, during the month of August especially with the increase in employment in food & beverages sector while, many respondents in the textile and apparel industry highlighted that the labour availability in the market was low.
Meanwhile, the Stock of Purchases expanded at a slower pace in August. Although the new orders and production expanded at a higher rate, the stock of purchases was not increased significantly due to accumulated stocks brought forward from previous month.
Increasing rate of contraction Services sector continued to expand in August 2019, yet at a slower pace compared to July 2019, underpinned by the increases in New Businesses, Business Activity and Expectations for Activity. Central Bank said.
Expansion in Business Activity in August 2019, was mainly attributable to the accommodation food & beverage sector owing to the improvement in tourist arrivals. New Businesses also expanded in August 2019, particularly in financial services and transportation sub sectors.
On the employment front, August saw a decline in staffing levels compared to the previous month, due to retirements and time lags in filling vacant positions.