Sri Lanka’s Manufacturing PMI rose to 56.8 in February 2026 from 56.1 in January, signaling a continued expansion in manufacturing activity. The Employment sub-index (58.6 vs. 51.5) and the Stock of Purchases sub-index (60.0 vs. 56.0) recorded further gains, indicating that firms are stepping up hiring and inventory accumulation ahead of the festive season. Some firms also reported building stocks pre-emptively in anticipation of potential supply disruptions linked to ongoing unrest in the Middle East.
The New Orders sub-index (55.0 vs. 58.5) and the Production sub-index (54.5 vs. 57.5) also remained in expansionary territory in February, though they grew at a slower pace than in the previous month. At the same time, Suppliers’ Delivery Times continued to lengthen, pointing to mounting pressure on supply chains.
Overall, expectations for manufacturing activity over the next three months remain positive, supported by projected festive demand. Nonetheless, many respondents highlighted concerns about possible negative repercussions should the Middle East conflict persist.
