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Sri Lanka’s business sector growth rises in August 2024

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Sri Lankan bike makers have now gone into the manufacture of electric bikes targeting mainly the European markets. PMI – Manufacturing recorded an index value of 55.5 in August 2024.

Manufacturing activities over the next three months remain positive

Services activities show slower expansion compared to July 2024

By Sanath Nanayakkare

New businesses increased in August 2024, particularly with the expansions observed in personal and financial services activities, Sri Lanka Purchasing Manager’s Index (PMI) report of the Central Bank of Sri Lanka states.PMI – Manufacturing recorded an index value of 55.5 in August 2024 indicating an expansion in manufacturing activities, yet at a slower rate compared to the previous month, according to the report.

All the sub-indices, except for employment, remained above the neutral threshold in August. The expansion in new orders and production was mainly driven by the manufacturing of the food & beverages sector. Further, the stock of purchases expanded during the month in line with the new orders and production. However, employment decreased on a month-on-month basis in August. Meanwhile, suppliers’ delivery time continued to lengthen during the month, the report notes.

It further states:

Expectations for manufacturing activities over the next three months remain positive, primarily due to the optimistic outlook on year-end seasonal demand, in spite of the election uncertainties.

PMI – Services as reflected by the Business Activity Index, recorded an index value of 65.2 in August 2024. This indicates a slower expansion in services activities compared to the previous month. The expansion in business activities was driven by the improvements observed across most sectors. Accordingly, business activities in the other personal services grew mainly due to improvements in entertainment and recreational activities. Further, business activities in the wholesale and retail trade, transportation services and financial services also indicated considerable growth during the month. However, business activities in the telecommunication, real estate and IT programming consultancy related activities remained at the same level as in the previous month, while activities in all other sectors recorded improvements.



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Ceylinco Life agent among three global finalists for award

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Ceylinco Life’s Ambalantota branch agent AIP Manjula

Ceylinco Life’s Ambalantota branch agent AIP Manjula has been named one of three global finalists for the prestigious Insurance Agent of the Year award at the 11th Asia Trusted Life Agents & Advisers Awards (ATLAA) 2026.

The recognition places a Sri Lankan insurance professional among the finalists in a regional field spanning South Asia, Southeast Asia, East Asia and the wider Asia-Pacific region.

Ceylinco Life said the achievement reflected the calibre and customer-focused approach of its agency force, while recognising Manjula’s professionalism and commitment to policyholders.

The award evaluates insurance agents on criteria extending beyond sales performance, including ethical conduct, client service, policy persistency, digital adoption, innovative practices and contributions to the insurance industry and community.

The awards are organised by Asia Advisers Network and Asia Insurance Review, with LIMRA as co-organiser. An independent judging and balloting process is monitored by KPMG as the official scrutineer. The judging panel comprises senior insurance executives, association presidents and industry experts from across the Asia-Pacific region.

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CEAT Kelani retains AA+ rating for sixth year

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CEAT Kelani Holdings (CKH) has retained its National Long-Term Rating of ‘AA+(lka)’ with a Stable Outlook from Fitch Ratings for the sixth consecutive year, reflecting the company’s financial resilience and leading position in Sri Lanka’s pneumatic tyre market.

The ‘AA+(lka)’ rating, the second-highest on Fitch’s national scale, indicates a very strong capacity to meet financial commitments.

Fitch said CKH’s established market leadership and resilient financial profile remained key strengths, while noting its exposure to price-sensitive, cyclical and highly competitive markets.

The Stable Outlook reflects expectations that the company will maintain its market position despite rising input costs and increasing competition from imported tyres, while preserving adequate credit metrics during periods of weaker earnings and higher investment.

Fitch expects CKH’s established brand, extensive dealer network and adaptive pricing strategies to support its market position. Planned production facility upgrades are also expected to improve product quality, particularly in the radial tyre segment.

The rating agency expects near-term pressure on margins from higher raw material and energy costs but said the company’s low leverage and sound liquidity would provide a cushion.

CKH Chairman Chanaka De Silva said the rating reinforced the company’s focus on disciplined financial management, operational adaptability and long-term investment.

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Commercial Bank leads nationwide aquatic clean-up drive

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Sanath Manatunge, Managing Director/CEO of Commercial Bank and some of the Bank’s staff participating in the coastal cleanup programme

Commercial Bank of Ceylon mobilised employees, customers, volunteers and community members for a nationwide coastal and aquatic clean-up campaign across 20 locations on September 19 to mark International Coastal Cleanup Day 2026.

Conducted under the bank’s sustainability platform, themed ‘Forward Together for a Cleaner Future’, the initiative covered 16 coastal locations and four inland waterways, bringing together stakeholders for a coordinated environmental conservation effort.

The flagship programme was held at Mount Lavinia Beach, with additional activities at Wellawatte and Galle Face beaches. Similar initiatives were conducted by the bank’s regional offices at locations including Kalutara, Negombo, Trincomalee, Batticaloa, Puttalam, Jaffna, Galle, Dondra, Tangalle and along the Mahaweli River.

Employees, management, Future Force volunteers, customers and their families participated alongside the Marine Environment Protection Authority (MEPA), United Nations Global Compact Network Sri Lanka, government and local authorities, environmental organisations and community members.

The bank said the initiative reflected its commitment to water stewardship after adopting Sustainable Development Goal 6 — Clean Water and Sanitation — as a priority goal in 2025.

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