Monday Apr 20, 2026
Monday Apr 20, 2026
Monday, 20 April 2026 04:35 - - {{hitsCtrl.values.hits}}
The country’s manufacturing and services sectors in March have expanded, as per the Purchasing Managers’ Index (PMI), its compiler the Central Bank of Sri Lanka (CBSL) said.
The Manufacturing PMI registered an index value of 66.7 in March, reflecting an increase in manufacturing activities at a faster rate compared to 56.8 in February 2026.
The CBSL said this increase was supported by heightened activity related to seasonal demand.
However, it added that many respondents reported a tight production environment, mainly attributed to raw material and fuel shortages, rising costs, and logistical constraints.
The New Orders and Production sub-indices expanded in March to 69.9 from 55 in February, particularly within the food and beverages and textile and wearing apparel manufacturing sectors.
The Stock of Purchases sub-index expanded in line with increasing production demand. In addition, some firms reported precautionary stocking to safeguard their production pipelines against potential disruptions due to the ongoing Middle East conflict.
The Employment Index expanded, albeit at a slower pace, in March.
Nevertheless, the Suppliers’ Delivery Time continued to lengthen, particularly due to demand pressures and shipping-related disruptions.
The CBSL said the outlook for manufacturing activities over the next three months remained above the neutral threshold, though somewhat moderated by uncertainties related to the ongoing Middle East conflict.
The Services PMI registered an index value of 59.4 in March, indicating a higher expansion in services activities compared to 54.4 in February 2026.
The CBSL said the expansion in business activities was supported by broad-based improvements across sectors.
The financial services sector remained the primary driver, benefiting from increased lending activity. In addition, wholesale and retail trade showed an expansion due to the festive demand, while professional services and other personal service activities also recorded notable growth.
The expansion of new businesses continued in March to 57.6 from 53.8 in February, driven by the financial service sector, with further support from significant growth in insurance and pension funding activities.
It noted that the employment increased further in March 2026, as firms expanded their workforce to meet rising consumer demand ahead of the festive season. Backlogs of work continued to decline, though the pace of contraction moderated during the month.
The CBSL said the expectations for Business Activity over the next quarter remained robust, supported by seasonal demand and new opportunities that could arise despite uncertainties in the current geopolitical environment.
However, noted that some firms highlighted downside risks to outlook, including the impact of the Middle East conflict and broader global economic uncertainty.
