The Central Bank of Sri Lanka says the Manufacturing PMI recorded an index value of 44.8 in December, indicating a continued setback in manufacturing activities.
The CBSL said this setback was driven by subdued performance observed in all the sub-indices, except Suppliers’ Delivery Time.
The decline in New Orders and Production was mainly driven by manufacturing of textile & wearing apparel sector.
The CBSL said subdued foreign demand due to seasonal holidays, and economic slowdown experienced in major export destinations was the main reasons for this decline.
The report added manufacturers mentioned that, although supply-side impediments such as high input cost and shortage of foreign exchange that affected importation of raw materials are yet to be resolved, demand slowdown due to deteriorated purchasing power of the customers was the key issue that restricted them from increasing production.
Furthermore, Employment and Stock of Purchases also declined in line with the decline in New Orders and Production.
Meanwhile, Suppliers’ Delivery Time lengthened in December 2022 compared to the previous month on a month-on-month basis.