The Monetary Board of the Central Bank of Sri Lanka (CBSL) issued directions on foreign currency borrowings by Licensed Finance Companies (LFCs) on 9th April 2021 with a view to provide flexibility for LFCs to obtain low-cost funding from foreign sources to support their business expansions. The objectives of these directions are to stabilise any financial volatilities created by the foreign funding exposures of LFCs and provide a risk management framework for such foreign currency borrowings.

Indicating a strong revival in manufacturing activities in the country,  the manufacturing PMI reached  a  9-month high  at 67.0 in March 2021. This was largely attributable to the increases observed  in  Production,  New  Orders,  and  Stock  of  Purchases sub-indices.The  significant  increases  in  New  Orders  and  Production  sub-indices,  particularly  in  the  manufacture  of  food  &  beverages  and textile  &  wearing  apparel  sectors,  have  mainly contributed  to  the improvement  in  the  overall  index.  Many  respondents  in  the manufacture  of  food  &  beverages  sector  highlighted  that  they experienced  higher  levels  of  sales  and  production  during  March 2021 ahead of the New Year festival season. Further, respondents from  the  textile  &  wearing  apparel  sector  mentioned  that  they increased  production  during  the  month  to  cover-up  seasonal holidays.