In February 2019, the deficit in the trade account narrowed further to US dollars 451million, recording the lowest monthly trade deficit in more than 5 years.

The considerable reduction in the trade deficit was due to the notable decline in import expenditure by 27.6 per cent (year-on-year) and increased earnings from exports by 7.2 per cent (year-on-year) in February 2019.

Earnings from tourism continued its robust performance, registering over 240,000 tourist arrivals per month since December 2018 and recording a growth of 7.0 per cent (year-on-year) in February 2019,

Workers’ remittances declined by 12.4 per cent (year-on-year) in February 2019, to US dollars 500 million.

Positive developments were observed in the financial account with net inflows of foreign investments to the government securities market in February 2019, although some net outflows were observed from the Colombo Stock Exchange (CSE).

Manufacturing activities accelerated in March 2019 compared to February 2019. Manufacturing PMI reached a 46-month high and signalled a surge in manufacturing activities. The increase of PMI in March was largely attributable to increase in New Orders in line with the seasonal demand, especially in manufacturing of food and beverages.

The Production also increased significantly, with the intention of achieving expected production levels ahead of the new year holidays in April. The Stock of Purchases and Employment also increased during the month in line with tight production schedules. Most respondents, especially in textile and apparel sector, highlighted that they had to work overtime in order to timely fulfil the orders ahead of festival holidays. Further, lengthening of Suppliers’ Delivery Time also contributed positively to the overall increase.

All sub-indices of PMI Manufacturing recorded values above the neutral 50.0 threshold signalling an overall expansion in manufacturing activities in March 2019 compared to February 2019.