Purchasing Managers’ Indices indicate expansions in both Manufacturing and Services activities in June 2026.
Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 53.0 in June 2026. This indicates continued expansion in manufacturing activities, albeit at a slower pace than the previous month.
Incoming orders in June were broadly unchanged from the previous month, with the New Orders sub-index remaining at the neutral threshold. The Production sub-index continued to expand, driven by the manufacture of food and beverages sector. The Employment sub-index remained around the neutral threshold, indicating hiring trends similar to those in the previous month. However, many respondents cited persistent skilled labour shortages and rising labour costs as key challenges. The Stock of Purchases sub-index increased further in June, reflecting firms' efforts to build inventory amid a volatile supply environment. Meanwhile, the Suppliers’ Delivery Time sub-index continued to lengthen in June.
The expectations for manufacturing activities remained positive, though moderated mainly by the challenging environment associated with the unrest in the Middle East.
Sri Lanka Purchasing Managers’ Index for Services (PMI – Services) recorded an index value of 58.5 in June 2026, indicating continued expansion in services activities compared to the previous month.
Business activity expanded in June 2026, supported by broad sectoral improvements. Growth was primarily driven by the financial and professional services sub-sectors, alongside notable gains in the insurance sector.
New businesses grew in June 2026, primarily led by the financial services sector. The insurance, professional services, and other personal services sectors also contributed to the expansion. Employment increased in June 2026 as multiple companies expanded their workforce. Meanwhile, the Backlogs of Work sub-index, which had been falling in May, held steady in June as the index reached the neutral threshold.
Expectations for business activity for the next quarter remained positive, driven by anticipated economic improvements and the expected surge in tourist arrivals, partly driven by the upcoming Kandy Esala Perahera season. However, broader global uncertainties still pose risks to the outlook.
