Monday Jan 19, 2026
Monday Jan 19, 2026
Monday, 19 January 2026 05:17 - - {{hitsCtrl.values.hits}}
The manufacturing and services sectors have expanded sharply in December 2025 despite the impact of the Ditwah devastation as per the Purchasing Managers’ Index (PMI) compiled by the Central Bank of Sri Lanka (CBSL).
It said the PMI – Manufacturing recorded an index value of 60.9 in December 2025, indicating a continued expansion in manufacturing activities. All sub-indices contributed positively to this increase, mainly supported by seasonal demand, despite adverse weather-related disruptions experienced at the beginning of the month.
\The New Orders and Production sub-indices increased in December 2025, driven by the Manufacture of Food and Beverages sector. Further, the Employment and Stock of Purchases sub-indices also increased, in line with the strengthening of New Orders and Production observed during the month. The Suppliers’ Delivery Time further extended in December 2025, mainly reflecting increased demand for input materials and adverse weather-related logistical delays.
Expectations for manufacturing activities over the next three months remain positive, supported by anticipated improvements in economic conditions.
The PMI – Services recorded an index value of 67.9 in December 2025, indicating a notable expansion in services activities compared to the previous month.
The significant growth of business activities in December 2025, despite the adverse weather-related disruptions experienced at the beginning of the month, was buoyed by robust performance across most of the sectors.
The Wholesale and Retail Trade was the primary driver of this expansion amid festive season demand. The upward trend was also supported by positive contributions from business activities related to the Other Personal and Accommodation, Food and Beverage service activities.
New Businesses increased in December 2025, underpinned by improved activity in Wholesale and Retail Trade, along with strengthened Financial Services activities.
Employment continued to rise in December 2025, reflecting workforce expansion by firms to meet year-end operational requirements. Meanwhile, Backlogs of Work grew for the second straight month.
The Expectations for Business Activity over the next quarter turned more optimistic, supported by a combination of favourable macroeconomic conditions and seasonal tourism related factors, and the gradual normalisation of operations following recent weather-related disruptions.
