Sri Lanka’s Manufacturing PMI rose sharply to 66.7 in March 2026 from 56.8 in February, reaching its highest level since June 2020. The reading points to robust expansion, largely supported by seasonal demand, even as firms continued to operate under tight production conditions arising from shortages of raw materials and fuel, higher costs, and logistical bottlenecks.
Both new orders (69.9 vs 55.0 in February) and production (68.8 vs 54.5) strengthened, with particularly strong gains in the food & beverages and textiles & wearing apparel sectors. Stocks of purchases also increased, though at a slightly slower pace (59.9 vs 60.0), as some firms accumulated precautionary inventories in response to risks associated with the Middle East conflict.
Employment growth moderated (55.9 vs 58.6), while suppliers’ delivery times lengthened further (75.5 vs 59.6), reflecting buoyant demand and ongoing shipping disruptions. Looking ahead, manufacturers remained broadly optimistic about the next quarter, though their expectations were somewhat restrained by uncertainties stemming from the Middle East conflict.
