Sri Lanka Manufacturing Activity Picks Up in July

Sri Lanka’s Manufacturing PMI stood at 53 in September 2026, remaining unchanged from the prior month, indicating a steady pace of growth as all sub-indices remained above the neutral threshold. New orders continued to expand, while production rebounded into positive territory, supported largely by increased activity in the food and beverages and textiles and wearing apparel sectors. Employment continued to grow at a solid pace, although the rate of expansion moderated compared to the previous month (52.6 vs. 54.8). Meanwhile, stocks of purchases moderated towards the neutral threshold, while supplier delivery times continued to lengthen at the same pace as in the previous month. Looking ahead, sentiment regarding manufacturing activity over the next three months remained positive, driven largely by expectations of stronger seasonal demand towards the year-end.

Sri Lanka’s Manufacturing PMI fell to 53 in August 2026 from 55 in July, indicating continued expansion in the manufacturing sector, albeit at a slower pace. All sub-indices remained above the neutral threshold, although production weighed on the index, falling into negative territory amid lower activity in the manufacture of textiles and wearing apparel. Lead times lengthened, reflecting persistent supply disruptions, while new orders were largely unchanged at the neutral 50 mark. Meanwhile, stocks of purchases increased amid a gradual build-up of inventories in preparation for year-end seasonal production. Employment also rose, reflecting continued hiring. Looking ahead, manufacturers remained optimistic, although sentiment moderated amid expectations of a year-end seasonal upturn.

Sri Lanka’s Manufacturing PMI rose to 55 in July 2026, up from 53 in June, indicating a faster expansion in manufacturing activity. New orders (55.9 vs 50) and production (54.5 vs 52) increased, driven by robust performance in the food and beverage manufacturing sector. Reflecting positive expectations for activity, employment rose to 51 from 50.5, while stocks of purchases remained in expansionary territory at 51.5, despite easing from 56.6. Meanwhile, suppliers’ delivery times remained extended at 61.5, little changed from 61.6, pointing to persistent supply-chain pressures as geopolitical tensions persist. Overall, manufacturers remained optimistic about activity over the next three months, while maintaining caution amid global uncertainties.