Business
Decline in consumers’ purchasing power hits manufacturing sector
SL Purchasing Managers’ Index – September 2022
Manufacturing PMI declined in September 2022, indicating a setback in manufacturing activities on a month-on-month basis. Accordingly, Manufacturing PMI recorded an index value of 42.6 in September 2022, with a decline of 7.0 index points from the previous month driven by the decreases in all the sub-indices, except Employment and Suppliers’ Delivery Time.
The decline in New Orders and Production was mainly attributable to the manufacture of food & beverages, and textiles & wearing apparel sectors. Many respondents representing manufacturing firms primarily catering to the domestic markets, including the manufacture of food & beverages, mentioned that the decline in demand was due to the deteriorating purchasing power of the consumers.
Further, manufacturers in the export-oriented industries mentioned that they experienced a weaker demand mainly due to the fear of recession in the major export destinations. However, Employment is broadly at the level of the previous month, while an improvement seen in the manufacture of textile and apparel sector. As the apparel sector frequently suffers from the scarcity of employees, it has tended to recruit despite the gloomy outlook, taking advantage of the healthy influx. The Stock of Purchases decreased in line with the decline in New Orders and Production while Suppliers’ Delivery Time lengthened slightly in September 2022. Some respondents mentioned that they continuously experience difficulties in sourcing raw materials due to lower foreign exchange availability, although some recent improvement has been witnessed.
For the next three months, the overall expectations for manufacturing activities deteriorated in September 2022, anticipating demand side impediments to be intensified in the coming months.
Services PMI recorded an index value of 51.2 in September 2022 indicating a marginal expansion in the services sector driven by the increases observed in New Businesses, Business Activities and Expectations for Activity. New Businesses expanded in September 2022 compared to August 2022, particularly with the improvements observed in financial services, accommodation, food and beverage and education subsectors. Business Activities in the services sector increased further during September amid the ease of the energy crisis and improvements in economic conditions. Accordingly, business activities related to financial services, other personal activities, education and insurance sub-sectors recorded improvements compared to the previous month. Nevertheless, business activities of real estate, postal and courier and human health sub-sectors declined during the month. Employment continued to fall in September due to increasing resignations and retirements besides halt in new recruitments. Meanwhile, Backlogs of Work continued to drop during the month with the ease of transportation difficulties faced by the staff.
(CBSL)
The Central Bank of Sri Lanka today (07) presented its flagship publication, the Annual Economic Review for 2024 (AER 2024), to President and Minister of Finance, Anura Kumara Disanayake, highlighting the steady progress of Sri Lanka’s economic recovery following the country’s most severe downturn in recent history.
The report was officially handed over by Dr. P. Nandalal Weerasinghe, Governor of the Central Bank, during a special ceremony held at the Presidential Secretariat.
AER 2024 comprises four main chapters: Macroeconomic Developments, Conditions of the Financial System, Review of Central Bank’s Policies and Macroeconomic Outlook.
According to the Review, the Sri Lankan economy showed significant signs of recovery in 2024, following the deep economic crisis experienced two years ago. The recovery trajectory, though challenging, has been notably faster than that of many other debt-distressed countries.
Improvements in economic activity, a partial resurgence in purchasing power and reduced uncertainty are among the key positive indicators noted in the report.
The event was attended by Dr. Nandika Sanath Kumanayake, Secretary to the President, K. M. Mahinda Siriwardena, Secretary to the Treasury, Mrs. K. M. A. N. Daulagala, Senior Deputy Governor, Dr. C. Amarasekara, Assistant Governor, Dr. (Mrs.) S. Jegajeevan, Director of Economic Research and Dr. L. R. C. Pathberiya and Additional Director of Economic Research at the Central Bank Dr. V. D. Wickramarachchi.
[PMD]
Business
IceWarp expands into Sri Lanka, fostering European innovation in collaboration with FentonsIT
IceWarp, a global leader in business communication solutions, has officially launched its cutting-edge platform in Sri Lanka, bringing European expertise in email and collaboration solutions to support the country’s evolving business landscape.
This expansion is driven by a strategic partnership with Fentons Information Technology (FIT), the Information Technology arm of Hayleys Fentons Limited.
The grand launch event held at The Kingsbury Colombo on 4th April, 2025, was graced by several distinguished guests, including Chief Guest Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC.
The presence of Adam Paclt, Global CEO of IceWarp, and Pramod Sharda, CEO for India and the Middle East of IceWarp, along with their global team, highlighted the significance of this expansion. Industry experts, government officials, corporate leaders, and CIOs from the banking, financial services and insurance sectors were in attendance as well, reflecting strong local interest in IceWarp’s European expertise.
With this launch, Sri Lankan businesses now have access to an affordable, scalable and secure alternative to Microsoft 365 and Google Workspace. IceWarp’s advanced Collaboration Suite integrates a wide range of tools into a single, unified platform designed to streamline communication and boost productivity. Offering flexible hybrid deployment options and cost-efficient solution, IceWarp enables organisations to optimise their operations without compromising security or functionality.
Ceylon Energy and HJT China have successfully completed the Mahiyangana-Kappalthurei 33kV power distribution lines and the Uhana Gantry as part of Sri Lanka’s Supporting Electricity Supply Reliability Improvement Project (SESRIP). Funded by the Asian Development Bank ($42 million), SESRIP aims to expand energy access in underserved regions, including conflict-affected areas and provinces like Uva and North Central.
The project’s infrastructure spans over 270 km of 33kV lines, 13 switching gantries, and 2,372 km of low-voltage extensions.
The projects connect 35,000+ households and improve reliability for 493,000+ consumers; integrates renewables to reduce losses.
The projects’ notable components include: Mahiyangana-Bibila Line: 36 km with 147 steel towers and Kappalthurei-Sixth Mile Post Line: 14 km with 58 towers.
Ceylon Energy Chairman Madushanka Fernando hailed it as a ‘new beginning of a brighter era’, emphasising the project’s role in uplifting rural communities and driving sustainable development.
The initiative underscores Sri Lanka’s commitment to inclusive, reliable energy and climate resilience.
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