Sri Lanka’s manufacturing and services sectors continued to expand in May 2026, according to the latest Purchasing Managers’ Indices (PMI) released by the Central Bank of Sri Lanka (CBSL).
The Manufacturing PMI increased to 56.6 in May, indicating a sustained expansion in industrial activity compared to the previous month. The Central Bank noted that all key sub-indices remained above the neutral threshold of 50, reflecting broad-based growth across the sector despite external uncertainties stemming from global geopolitical developments, including the ongoing conflict in the Middle East.
According to the report, growth in new orders and production was largely driven by the food and beverage industry, as well as the textiles and apparel sector. Manufacturing output also benefited from a higher number of working days in May compared to April.
The stock of purchases increased during the month, in line with rising demand and higher production levels, indicating continued confidence among manufacturers.
Meanwhile, the Services PMI recorded a value of 56.9 in May, signalling a return to expansion following a contraction recorded in the previous month.
The growth in services activity was primarily supported by improvements in the financial services, professional services, and other personal services sectors. Significant gains were also reported in real estate activities, information technology and programming services, and goods transportation.
The Central Bank stated that new business volumes increased during the month, particularly in the financial and professional services sectors. Wholesale and retail trade, along with logistics-related activities, also contributed to the positive performance.
Looking ahead, business expectations for the next three months remain optimistic. The CBSL noted that anticipated growth in tourist arrivals during the upcoming Perahera season, together with improving domestic economic conditions, is expected to support further expansion in both manufacturing and services activities.
The latest PMI results indicate continued momentum in Sri Lanka’s economic recovery, with business activity showing resilience amid both domestic and global challenges.
