Sri Lanka Manufacturing and Services sectors plunge in April 2020

(COLOMBO, LANKAPUVATH) –According to the Sri Lanka Purchasing Managers’ Index (PMI) released by the Statistics Department of Central Bank, Manufacturing and Services plunged further in April 2020 to the lowest levels since the beginning of the survey in 2015.

Manufacturing PMI, recorded at an index value of 24.2 with a fall of 5.8 index points from the previous month, while Services sector PMI declined to a record-low of 29.9 index points in April 2020.

The decline in Manufacturing index was mainly driven by New Orders, Production and Employment sub-indices which declined at record rates.

With the continuation of island wide curfew to limit the spread of the coronavirus, almost all the manufacturing establishments either remained closed during the month of April 2020 or operated at a fraction of its usual capacity.

Many respondents in the textile and wearing apparel sector highlighted that they have not received orders for their regular products particularly from US and European buyers due to rapid spread of COVID19 in those countries.

The manufacturers remain cautioned that COVID-19 pandemic would disrupt the global supply chain as well as demand. However, the overall expectations for manufacturing activities for the next three months increased compared to the previous month, still remaining below the neutral threshold.

Services sector PMI declined to a record-low of 29.9 index points in April 2020, down from 32.0 in March 2020 as Business Activities and Employment sub-indices fell at higher rates due to the extended lockdown measures taken to curb the spread of COVID-19 pandemic

Employment in Services sector continued to decline due to discontinuation of the service of contractual and casual employees amidst the freeze of new recruitments.

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