Sri Lanka Manufacturing PMI Rise in February 2026

Sri Lanka's Manufacturing PMI rose to 56.8 in February 2026 from 56.1 in January, indicating continued expansion in manufacturing activities. The Employment sub-index (58.6 vs 51.5) and Stock of Purchases sub-index (60.0 vs 56.0) expanded further during the month, reflecting firms' preparations ahead of the festive season. Some firms also reported pre-emptive stocking in anticipation of potential supply pressures stemming from Middle East unrest. The New Orders sub-index (55.0 vs 58.5) and Production sub-index (54.5 vs 57.5) expanded in February, though at a slower pace than the prior month. Meanwhile, Suppliers' Delivery Times lengthened further, signaling increased pressure on supply chains. Expectations for manufacturing activities over the next three months remain positive, driven by anticipated festive demand. However, many respondents expressed caution about potential adverse effects if the Middle East conflict persists.

Sri Lanka’s Manufacturing PMI eased to 56.1 in January 2026 from 60.9 in December 2025, indicating that manufacturing activity continued to expand, albeit at a slower pace following the seasonal peak recorded in the previous month. All sub-indices remained above the neutral 50 threshold, signaling sustained growth in the sector. Expansion moderated for new orders (58.5 vs 63.8 in December) and production (57.5 vs 61.2). Employment growth also softened (51.5 versus 58.5), reflecting more moderate hiring conditions. Meanwhile, the stock of purchases accelerated (56.0 vs 53.7), largely due to inventory buildup ahead of the Chinese New Year holidays. Suppliers’ delivery time remained lengthened but eased somewhat (55.0 vs 62.5), consistent with slower growth in demand. Looking ahead, expectations for manufacturing activity over the next three months remain positive, supported by anticipated improvements in business conditions.

Sri Lanka’s Manufacturing PMI increased to 60.9 in December 2025 from 55.5 in November, indicating a sustained expansion in manufacturing activity. The improvement was largely driven by seasonal demand, despite weather-related disruptions experienced at the beginning of the month. Most sub-indices recorded growth during the period. New Orders rose sharply (63.8 versus 58.5), while Production increased (61.2 versus 50.0), mainly supported by strong activity in the food and beverages manufacturing sector. Employment also expanded (58.5 versus 55.5) and in line with increased production. The Stock of Purchases index remained in expansionary territory though it declined (53.7 versus 57.0). Meanwhile, Suppliers’ Delivery Time lengthened further (62.5 versus 57.7), in line with the strengthening of New Orders and Production. Looking ahead, expectations for manufacturing activity over the next three months remain positive, supported by anticipated improvements in overall economic conditions.