Sri Lanka's Manufacturing PMI slipped to 53.0 in June 2026 from 56.6 in May, indicating that the sector continued to expand but at a slower pace. New orders softened to the neutral 50.0 level from 52.6, pointing to broadly unchanged demand compared with the previous month. Production also maintained growth momentum, though it moderated (54.6 vs. 57.2), with expansion driven mainly by the food and beverage segment.
Employment remained strong and largely consistent with the previous month (59.7 vs. 60.5), even as manufacturers continued to grapple with skilled labor shortages and rising wage pressures. Supplier delivery times lengthened further (66.3 vs. 61.6), while inventories rose (56.6 vs. 52.6) as firms built up stocks to cushion against supply disruptions related to the conflict in the Middle East. Despite these challenges, manufacturers’ expectations stayed positive, though the broader outlook remained clouded by ongoing geopolitical uncertainty.
