FX.co ★ Sri Lanka Manufacturing Activity Eases

Sri Lanka’s Manufacturing PMI eased to 53 in August 2026 from 55 in July, signaling that the sector continued to expand, though at a slower pace. All sub-indices stayed above the neutral 50 threshold, but the overall index was dragged down by the production component, which slipped into contraction due to reduced activity in the manufacture of textiles and wearing apparel. Supplier delivery times lengthened, pointing to ongoing supply chain disruptions, while new orders hovered at the neutral 50 level, indicating stable demand. In contrast, stocks of purchases increased as firms gradually built up inventories ahead of year-end seasonal production. Employment also rose, consistent with continued hiring. Looking ahead, manufacturers remained broadly optimistic, though confidence softened somewhat despite expectations of a seasonal upturn toward the end of the year.