Sri Lanka manufacturing and services activity expands in August

Sri Lanka’s manufacturing and services sectors expanded in August, according to the Central Bank of Sri Lanka’s (CBSL) Purchasing Managers’ Index (PMI).

The Manufacturing PMI eased to 53 in August from 55.6 in July, indicating slower growth.

New orders remained unchanged, while employment and purchases increased as businesses prepared for year-end seasonal demand.

However, longer supplier delivery times reflected continued supply disruptions.

The CBSL said the manufacturing outlook remains positive despite some near-term challenges.

The Services PMI rose to 65.6 in August from 61.4 in July, showing faster growth.

The expansion was mainly driven by transportation, wholesale and retail trade, and professional services, with financial and personal services also contributing.

New business and employment increased, while backlogs of work declined.

The CBSL said business expectations for the coming quarter remained positive, supported by expected economic improvements and higher tourist arrivals, although global economic uncertainty continues to pose risks.