News
CB reports slowing of growth in manufacturing and services due to dollar shortage, fuel scarcity and power cuts
A report released by the Central Bank, on Wednesday (16) shows that shortage of dollars, fuel scarcity and power cuts have slowed the growth of the manufacturing and service sectors in February.
The report, Purchasing Managers’ Index (MPI) shows that the Manufacturing PMI, 52.5 in February, reflected a decrease of 6.2 index points in that month compared to January.
The services sector PMI recorded an index value of 51.8 in February, a decrease of 5.7 index points compared to January. The PMIs for both manufacturing and services sectors grew at a slower pace in January as compared to December 2021.
The Central Bank has said production, stock of purchases and employment declined in February, while suppliers’ delivery time lengthened on a month-on-month basis. There was an expansion in new orders, especially in the manufacture of foods and beverages, in February, ahead of Sinhala and Hindu New Year season. However, the production declined on a month-on-month basis, due to fewer working days in February, and supply-side constraints.
The reports says many companies found it difficult to purchase imported raw and packaging materials due to delays in opening letters of credit by banks.
However, business activities continued to grow in February, even though at a slower pace, with the improvements observed in several sub-sectors. The report said, financial services, education, professional services, other personal activities, real estate and transportation sub-sectors reported improvements during the month. In addition, business activities in the accommodation, food and beverage sub-sector also recorded a marginal growth amid the steady increase in tourist arrivals despite the disturbances occurring from disruptions to fuel and electricity supplies during the latter part of the month.
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Cabinet approves establishment of Activity-Based Learning Centers at Regional Level for Commerce Education
The importance of establishing learning centers at regional level has been identified in order to achieve multiple objectives, including the development of teachers, utilization as a hub for new technology and resource sharing, enhancement of vocational and higher education opportunities, efficient utilization of limited physical and human resources, integration of new technologies with subject-specific knowledge,
sharing of limited resources to ensure equitable access to education, and development of skills in line with regional potential, thereby contributing to the qualitative development of commerce education.
Accordingly, the project to establish 100 activity-based learning centers for the enhancement of commerce education has been included in the Public Investment Programme as a major investment project in general education, with an estimated total cost of Rs. 289 million, to be implemented during the period 2026–2028.
Having considered the proposal submitted by the Prime Minister, in her capacity as the Minister of Education, Higher Education and Vocational Education, Cabinet approval was granted to establish and operationalize 25 regional centres covering all 25 districts.
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M/s. Resources Development Consultants (Pvt) Ltd appointed to prepare Feasibility Study and detailed plans for the extension of the Kelani Valley Railway Line from Avissawella to Ratnapura
Approval was granted at the Cabinet Meeting held on 21-10-2025 to carry out a feasibility study and prepare detailed plans for the extension of the Kelani Valley Railway Line from Avissawella to Ratnapura.
The calling of expressions for this purpose has been conducted under the national Competitive Procurement Procedure, and 8 bidders have submitted their Expression of Interest in that respect.
Following the evaluation of technical proposals submitted by the short-listed bidders, and financial proposals of the 4 eligible institutions have been opened. Subsequent to the evaluation of the aforementioned financial proposals, the Consultant Procurement Committee has recommended awarding
the consultancy for the feasibility study and preparation of detailed plans for the extension of the Kelani Valley Railway Line from Avissawella to Ratnapura to M/s. Resources Development Consultants (Pvt) Ltd at a total cost of Rs. 356.22 million (exclusive of taxes).
Accordingly, the Cabinet of Ministers has approved the resolution furnished by the Minister of Transport, Highways and Urban Development to award the said procurement in line with the above recommendation.
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Import and Export (Control) Regulations No. 01 of 2026, issued under the Imports and Exports (Control) Act, No. 1 of 1969, to be submitted for concurrence of the Parliament
The Special Import Licence Regulations No. 01 of 2023, published in Extraordinary Gazette No. 2312/77 dated 01-01-2023, prohibit the importation of retreaded tires, including those used for aircraft.
However, the Ministry of Ports and Civil Aviation has made a request that an exemption be granted to permit the importation of retreaded aircraft tires classified under HS Code 4012.13 for Sri Lankan Airlines.
Taking into consideration essential operational and safety requirements, it has been decided to permit the importation of retreaded aircraft tires classified under HS Code 4012.13, subject to the recommendation of the Ministry of Ports and Civil Aviation, provided that such tires comply with the requirements specified by internationally recognized aviation authorities and are imported by Sri Lankan airline operators engaged in international air services under a duly executed supply agreement between the airline and a certified international supplier.
Accordingly, the Cabinet of Ministers has approved the resolution furnished by the President, in his capacity as the Minister of Finance, Planning and Economic Development, to submit the Import and Export (Control) Regulations No. 01 of 2026, published in Extraordinary Gazette No. 2481/02 dated 23-03-2026 under the provisions of the Imports and Exports (Control) Act, No. 1 of 1969, for the concurrence of the Parliament.
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