ECONOMYNEXT – Sri Lanka manufacturing and services activities have dropped in April 2021, amid a traditional holiday and the onset of a third Coronavirus wave, the central bank which compiles a Purchasing Managers; Index said.
The PMI for manufacturing had dropped below 50 falling 22.7 points to 44.3 points in April 2021.
“This was mainly due to the significant declines in Production, New Orders, Stock of Purchases, and Employment sub-indices compared to the significant expansion recorded in March,” the central bank said.
“The New Orders significantly declined with the end of the Sinhala and Tamil new year seasonal demand, particulaly in the manufacture of food & beverages sector.
“Further, the resurgence of the COVID-19 pandemic in the latter part of April prevented many employees from reporting to the workplaces…”
Some employers had refrained from employing their entire workforce.
The PMI for Services had dropped to 48.9 in April 2021, though hotels showed growth.
“New businesses and Business activities in the services sector decreased in April 2021, particularly with the declines observed in transportation, education and insurance sub-sectors,” the statement said.
“Moreover, other personal services sub-sector also experienced a decrease in Business activities in April 2021.
“Extensive holidays during the month of April amidst the impact from the onset of the third wave of COVID-19 pandemic towards the latter part of the month led this moderation of Business activities in the services sector.
“Nevertheless, accommodation, food and beverage and wholesale and retail trade sub-sectors saw improvements in April 2021 mainly due to the surge in demand for goods and services during the Sinhala and Tamil new year season.”