Manufacturing, services PMI improve in July

Tuesday, 18 August 2026 12:41 - - {{hitsCtrl.values.hits}}

The country’s manufacturing and services sectors in July 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 55 in July, indicating an increase in manufacturing activities at a faster rate compared to 53 in June 2026.

The CBSL said all sub-indices contributed positively to this improvement. The overall expansion in the New Orders in July expanded to 55.9 from 50 in June and Production expanded in July to 54.5 from 52 in June 2026. Accordingly, these sub-indices was primarily driven by robust performance within the food and beverage manufacturing sector.

Reflecting positive expectations for manufacturing activities, both the Employment and Stock of Purchases sub-indices remained expanded in July.

However, Suppliers’ Delivery Time remained lengthened during the month, pointing to persistent supply-chain pressures.

The CBSL said the outlook for manufacturing activities remained optimistic about the next three months, while maintaining caution amid global uncertainties.

The Services PMI registered an index value of 61.4 in July, indicating a higher expansion in services activities compared to 58.5 in June 2026.

The CBSL said Business activity expanded in July 2026, supported by broad-based improvements across service sectors. The expansion was primarily driven by the transportation, financial, and professional services sub-sectors, while other personal services sub-sector also recorded notable growth.

New businesses expanded in July 2026, primarily led by the transportation and professional services sub-sectors. The financial and other personal services sub-sectors also contributed to the expansion. Employment increased in July 2026, supported by new recruitments and a slowdown in staff resignations. Meanwhile, Backlogs of Work increased compared to the previous month.

The CBSL said the expectations for Business Activity for the upcoming quarter strengthened further in July 2026, fuelled by anticipated economic improvements and strong growth in tourist arrivals for the Kandy Esala Perahera. However, broader global economic uncertainties continued to pose downside risks to the outlook.