Sri Lanka's Manufacturing Sector Grows While Services Slow Down

Manufacturing Sector Growth#

Sri Lanka's manufacturing sector continued to show growth in February, with the Purchasing Managers’ Index (PMI) reaching 56.8 points, an increase from 56.1 points in January. The PMI is a key indicator that reflects the economic health of the manufacturing sector, with a reading above 50 indicating expansion.

Services Sector Decline#

In contrast, the services sector experienced a slowdown, with its PMI falling to 54.4 points in February from 64.5 points in January. This decline suggests that while the services sector is still expanding, it is doing so at a slower pace compared to the previous month.

Understanding PMI#

The PMI is a crucial tool for gauging economic activity. A PMI reading above 50 signifies that the sector is growing, while a reading below 50 indicates contraction. These figures provide valuable insights into the overall economic landscape of Sri Lanka.