Industry Economy & Growth Economy & Market

Sri Lanka manufacturing expands in Mar 2026 on seasonal demand: PMI

Sri Lanka’s manufacturing sector continued to expand in March, supported by heightened activity related to seasonal demand, registering a value of 66.7 on a Purchasing Managers Index compiled by the central bank, compared to 56.8 the previous month.

“However, many respondents reported a tight production environment, mainly attributed to raw material and fuel shortages, rising costs, and logistical constraints,” CBSL said.

All the sub-indices expanded in the month, CBSL said.

The New Orders and Production sub-indices expanded, particularly within the food and beverages and textile and wearing apparel manufacturing sectors.

The Stock of Purchases sub-index expanded with increasing production demand.

“Some firms reported precautionary stocking to safeguard their production pipelines against potential disruptions due to the ongoing Middle East conflict.”

Suppliers’ Delivery Time continued to lengthen due to demand pressures and shipping-related disruptions.

The Employment Index also expanded, but at a slower pace.

“Expectations for manufacturing activities over the next quarter remained above the neutral threshold, though somewhat moderated by uncertainties related to the ongoing Middle East conflict.”

source: Economy Next