Purchasing Managers’ Indices indicate expansions in both Manufacturing and Services activities in August 2026.
Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 53.0 in August 2026. This indicates an expansion in manufacturing activities, albeit at a slower rate compared to the previous month. All the sub-indices, except for Production, remained above the neutral threshold in August.
The New Orders sub-index remained at the neutral threshold in August, indicating broadly unchanged levels of new business activities. Meanwhile, the moderation in the Production sub-index was driven by the manufacture of textiles and wearing apparel sector. Both the Employment and Quantity of Purchases sub-indices increased in August, reflecting continued hiring and a gradual build-up of inventories in preparation for year-end seasonal production. Meanwhile, Suppliers’ Delivery Times sub-index lengthened further in August, reflecting persistent supply disruptions.
The outlook remains positive, albeit moderated by near-term challenges, mainly due to the expected year-end seasonal upturn.
Sri Lanka Purchasing Managers’ Index for Services(PMI – Services) recorded an index value of 65.6 in August 2026, indicating an accelerated expansion in services activities compared to the previous month.
Business activity grew at a faster pace in August 2026, supported by the improvements observed across many sectors. This growth was primarily driven by the strong performance in transportation, wholesale and retail trade, and professional services sub-sectors, while financial and other personal services sub-sectors also contributed notably.
New businesses increased in August 2026, primarily due to the expansions observed in wholesale and retail trade, financial and other personal services sub-sectors. The professional services sub-sector also contributed positively to this increase.
Employment increased in August 2026, supported by new recruitments. Meanwhile, Backlogs of Work declined in August 2026, reversing the increase recorded in the previous month.
Expectations for Business Activity for the upcoming quarter remained positive in August 2026, supported by anticipated economic improvements and expected growth in tourist arrivals. However, broader global economic uncertainties continued to pose downside risks to the outlook.
