Sri Lanka’s manufacturing and services sectors recorded continued expansion in May 2026, according to the Central Bank of Sri Lanka (CBSL), as reflected in the latest Purchasing Managers’ Indices (PMI).

The PMI for Manufacturing increased to 56.6 in May, indicating a month-on-month expansion in industrial activity. The Central Bank noted that all sub-indices remained above the neutral threshold, contributing to overall growth despite external pressures linked to global geopolitical tensions, including the ongoing Middle East conflict.

Growth in new orders and production was primarily driven by the food and beverage sector as well as textiles and wearing apparel. Higher output was also supported by an increase in working days compared to April. The stock of purchases rose in line with rising demand and production levels.

The PMI for Services recorded a value of 56.9 in May, reflecting a rebound in activity following a contraction in the previous month.

Expansion was driven mainly by financial, professional, and other personal services, while real estate, IT programming, and goods transportation also showed notable gains.

New business intake increased during the month, particularly in financial and professional services, alongside contributions from wholesale and retail trade and logistics-related activities.

Looking ahead, business expectations for the coming quarter remain positive, supported by anticipated growth in tourist arrivals during the upcoming Perahera season and improving domestic economic conditions, the CBSL said.