📈 SL Economy Ends 2025 with Strong PMI Expansion

Sri Lanka’s private sector activities recorded sharp growth in December 2025, showing resilience despite the massive impact of the Cyclone Ditwah devastation and early-month logistical disruptions. • Manufacturing Growth: The sector PMI rose to 60.9 (from 55.5 in November), indicating a faster pace of expansion. • Key Drivers: Growth was primarily led by the Manufacture of Food & Beverages sector due to peak festive season demand. • Sub-indices: New Orders (63.8) and Production (61.2) surged, while Employment also expanded (58.5) as firms increased capacity. Suppliers’ Delivery Time lengthened due to input demand and weather-related delays. • Services Sector Surge: The Services PMI jumped to 67.9 (from 50.5 in November), signaling a robust recovery in public-facing industries. • Sector Leaders: Wholesale & Retail Trade was the primary driver. Strong contributions also came from Accommodation, Food & Beverage (reflecting a revival in tourism) and Financial Services. • Employment: Continued to rise as firms met year-end operational requirements, though work backlogs grew for a second month. • Future Outlook: Business expectations for the next quarter have turned markedly optimistic (75.3 for services), supported by favorable macroeconomic conditions and seasonal tourism factors. _Source: Central Bank of Sri Lanka (CBSL)_