Business activity strengthened across both manufacturing and services sectors in May, suggesting that economic momentum remained intact despite uncertainty in the global environment.
The latest Purchasing Managers’ Index (PMI) released by the Central Bank shows that businesses reported higher orders, increased production, and stronger service sector activity during the month.
The data also indicates that domestic demand and business confidence continued to support economic activity, even as geopolitical tensions in the Middle East created external challenges.
Manufacturing Sector Records Faster Expansion
The PMI for Manufacturing increased to 56.6 in May, signalling a month-on-month expansion in industrial activity.
According to the Central Bank, all manufacturing sub-indices remained above the neutral threshold of 50, contributing to overall growth during the month.
Growth in new orders and production was mainly driven by the food and beverage sector and the textiles and wearing apparel industry.
Manufacturers also benefited from a higher number of working days compared to April, which supported increased output.
The stock of purchases rose alongside growing demand and production requirements, reflecting continued activity within the sector.
Services Sector Returns to Growth
The PMI for Services recorded 56.9 in May, marking a recovery from the contraction recorded in the previous month.
Expansion was driven primarily by financial services, professional services, and other personal services.
The Central Bank also noted stronger activity in real estate, information technology programming, and goods transportation services.
New business intake increased during the month, particularly within financial and professional services.
Wholesale and retail trade activities, together with logistics-related services, also contributed to the improvement.
Businesses Remain Optimistic
Looking ahead, business expectations for the coming three months remain positive.
According to the Central Bank, firms expect activity to be supported by higher tourist arrivals during the upcoming Perahera season and improving domestic economic conditions.
The latest PMI figures suggest that both manufacturing and services sectors continued to expand in May, providing another indication that business activity remained on a growth path despite external economic uncertainties.
Central Bank of Sri Lanka (CBSL) Numbers & Indexes
Last modified: June 17, 2026
