Thursday Jul 16, 2026
Thursday Jul 16, 2026
Thursday, 16 July 2026 02:43 - - {{hitsCtrl.values.hits}}
The country’s manufacturing and services sectors in June have expanded, though at a slower rate compared to the previous month, 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 53 in June, indicating a continued expansion in manufacturing activities, although at a slower rate compared to 56.6 in May 2026.
The CBSL said incoming orders in June were broadly unchanged from the previous month, with the New Orders sub-index remaining at the neutral threshold.
It added that the Production sub-index continued to expand, driven by the manufacture of food and beverages sector.
The Employment sub-index remained around the neutral threshold, indicating hiring trends similar to those in the previous month.
However, the CBSL said many respondents cited persistent skilled labour shortages and rising labour costs as key challenges.
The Stock of Purchases sub-index increased further in June, reflecting firms’ efforts to build inventory amid a volatile supply environment.
Nevertheless, the Suppliers’ Delivery Time sub-index continued to lengthen in June.
The CBSL said expectations for manufacturing activities remained positive, though moderated mainly by the challenging environment associated with the unrest in the Middle East.
The Services PMI registered an index value of 58.5 in June, indicating continued expansion in services activities compared to 56.9 the previous month.
The CBSL noted that business activities expanded in June, supported by broad sectoral improvements. Growth was primarily driven by the financial and professional services sub-sectors, alongside notable gains in the insurance sector.
New Businesses grew to 62.5 in June from 58 in May 2026, primarily led by the financial services sector. The insurance, professional services, and other personal services sectors also contributed to the expansion.
Employment increased in June to 54 from 49.4 in May 2025, as multiple companies expanded their workforce. Meanwhile, the Backlogs of Work sub-index, which had been falling in May, held steady in June at 50 as the index reached the neutral threshold.
The CBSL said expectations for business activity for the next quarter remained positive, driven by anticipated economic improvements and the expected surge in tourist arrivals, partly driven by the upcoming Kandy Esala Perahera season. However, broader global uncertainties still pose risks to the outlook.
