Purchasing Managers’ Indices indicate improvements in both Manufacturing and Services activities in May 2026.
Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 56.6 in May 2026, indicating an expansion in manufacturing activities compared to April 2026. All sub-index values recorded above the neutral threshold during the month, contributing to the overall increase in the index value. However, respondents continued to highlight the challenging operating environment associated with the Middle East conflict.
The increases in the New Orders and Production sub-indices were mainly driven by the manufacture of food & beverages and textiles & manufacture of wearing apparel sectors. The increase in production activities was mainly supported by the higher number of working days that prevailed in May compared to the previous month. Moreover, the Stock of Purchases increased during the month, in line with the increase in New Orders and Production. Meanwhile, Suppliers' Delivery Time remained lengthened in May.
Expectations 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.
Sri Lanka Purchasing Managers’ Index for Services (PMI – Services) recorded an index value of 56.9 in May 2026, indicating an expansion in services activities compared to the previous month.
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 2026, 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.
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.
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.
