Manufacturing, services PMI improves in May

Wednesday, 17 June 2026 06:47 - - {{hitsCtrl.values.hits}}

The country’s manufacturing and services sectors in May 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 56.6 in May, reflecting an increase in manufacturing activities at a faster rate compared to 42.6 in April 2026.

The CBSL said all sub-index values recorded above the neutral threshold during the month, contributing to the overall increase in the index value.

However, it added that many respondents continued to highlight the challenging operating environment associated with the Middle East conflict.

The New Orders and Production sub-indices expanded in May to 52.6 from 36.4 in April, mainly driven by the manufacture of food and beverages and textiles and manufacture of wearing apparel sectors.

The increase in production activities expanded to 54.6 in May from 30.5 in April, mainly supported by the higher number of working days that prevailed in May compared to the previous month.

The Stock of Purchases also increased in May to 52.6 from 44 in April, in line with the increase in New Orders and Production.

Suppliers’ Delivery Time remained lengthened in May, but at a slower rate.

The CBSL said the outlook for manufacturing activities over the next three months remained above the neutral threshold, while risks associated with the Middle East conflict continued to weigh on business sentiments.

The Services PMI registered an index value of 56.9 in May, indicating a higher expansion in services activities compared to 46.7 in April 2026.

The CBSL said the new business activity in the services sector rebounded in May 2026, following a decline in the previous month.

The expansion was primarily driven by the financial, professional, and other personal services sub-sectors, while real estate, IT programming, and goods transportation also recorded notable growth.

New businesses increased in May to 58 from 48.9 in April, primarily driven by growth in financial and professional services sectors. The wholesale and retail trade, other personal services, and goods transportation sectors also contributed to this increase.

However, employment declined in May 2026 due to contract expirations, retirements, and resignations. Meanwhile, backlogs of work continued to decline at a faster rate than in the previous month.

The CBSL said the expectations for business activity over the next quarter remained positive, buoyed by an expected surge in tourist arrivals for the Perahera season and improved economic conditions. Nevertheless, broader global uncertainties continued to pose risks to this projected growth.