Purchasing Managers’ Indices indicate expansions in both Manufacturing and Services activities in July 2026.
Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 55.0 in July 2026, indicating continued expansion in manufacturing activities. All sub-indices contributed positively to this improvement.
The overall expansion in the New Orders and Production 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. Meanwhile, Suppliers’ Delivery Time remained lengthened during the month, pointing to persistent supply-chain pressures.
The manufacturing sector remained optimistic about the next three months, while maintaining caution amid global uncertainties.
Sri Lanka Purchasing Managers’ Index for Services (PMI – Services) recorded an index value of 61.4 in July 2026, indicating an accelerated expansion in services activities compared to the previous month.
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.
Expectations for Business Activity for the upcoming quarter strengthened further in July 2026, fueled 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.
