Wednesday Sep 17, 2025
Wednesday Sep 17, 2025
Tuesday, 16 September 2025 04:40 - - {{hitsCtrl.values.hits}}
The country’s manufacturing and services sectors in August 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 55.2 in August indicating an expansion in manufacturing activities, though at a slower rate compared to 62.2 in July 2025.
The CBSL said this expansion has remained above the neutral threshold during the month from all sub-indices.
Growth in New Orders and Production was supported largely by the food and beverages manufacturing sector. The Stock of Purchases sub-index also recorded an expansion, in line with the New Orders and Production activities.
The Employment sub-index remained in the positive territory during August, indicating favourable Employment conditions. However, Suppliers’ Delivery Time continued to lengthen during the month, with some respondents reporting delays in international shipping.
The CBSL said the industry manufacturers were optimistic about the outlook for the next three months, largely underpinned by the anticipated seasonal demand towards the year end.
The Services PMI registered an index value of 68.9 in August showing accelerated expansion in services activity following a similar trend observed in the same period last year, albeit at a slower rate compared to 70.1 in July 2025.
Business activities continued to expand in August 2025 supported by the improvements observed across many sectors. The expansion was buoyed by strong performance in wholesale and retail trade, other personal services, and accommodation, food and beverage services, which increased amid high tourist arrivals.
Positive developments were also observed in business activities related to financial services, driven by the increase in lending activities.
The CBSL said the New Businesses rose to 66.8 in August from 64.9 in July primarily due to the expansions observed in wholesale and retail trade, and financial services related activities.
Employment continued to increase in August, reflecting further recruitments in several companies to support ongoing operational requirements. However, Backlogs of Work declined slightly compared to the previous month.
The CBSL noted that Expectations for Business Activities over the next three months continued to improve supported by favourable macroeconomic conditions and seasonal factors, including higher tourist arrivals.
