Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 55.5 in May 2025, indicating an expansion in manufacturing activities.
All sub-indices rebounded above the neutral threshold during the month, indicating a recovery from the seasonal slowdown recorded in April.
The increases in the New Orders and Production sub-indices were mainly attributable to the manufacture of textiles and wearing apparel sector.
The Stock of Purchases remained the same as the previous month’s levels. The Employment sub-index denoted arecovery during themonth, particularly due to the manufacture of textiles and wearing apparel sector.
Suppliers’ Delivery Time remained lengthened during the period.
The industry expectations for the next three months remain positive, anticipating a gradual increase in demand. However, respondents are cautious about the upward revision in the electricity tariffs and thetense situation in the Middle East.
Index for Services
(PMI – Services) recorded a value of 57.0 in May 2025 indicating a slower expansion in services activities, following a similar trend observed in the corresponding period last year.
Business activities expanded in May 2025 supported by the improvements observed across severalsectors. Business activities related to financial services continued to improve, underpinned by increased lending activity.
Business activities in the professional services and wholesale and retail trade also recorded significant growth during the month. However, business activities in the accommodation, food and beverage services declined during the month in line with the decline in tourist arrivals on a month-on-month basis.
New Businesses increased in May primarily due to the expansion observed in the financial services.
Employment declined in May due to retirements and resignations reported across several companies.
Backlogs of Work continued to decline during the month.
