📈 Sri Lanka Manufacturing & Services PMIs Rebound Strongly in May

Sri Lanka’s economic activities expanded at a faster pace in May 2026, bouncing back from the previous month’s seasonal dip, according to provisional data from the Central Bank of Sri Lanka (CBSL). • Manufacturing Sector: The Manufacturing PMI surged to 56.6 in May from 42.6 in April. All sub-indices stood above the neutral threshold, driven by a higher number of working days. - New Orders & Production: Rose to 52.6 and 54.6 respectively, led primarily by the food & beverages and textiles & wearing apparel sectors. - Stock of Purchases: Increased to 52.6 (from 44.0 in April) in line with order growth. - Sentiment: The 3-month outlook remains positive, though risks from the Middle East conflict continue to weigh on business sentiment and lengthen suppliers' delivery times. • Services Sector: The Services PMI rebounded to 56.9 in May from 46.7 in April, signaling higher expansion across major sub-sectors. - New Businesses: Climbed to 58.0 (from 48.9 in April), driven by financial services, professional services, wholesale and retail trade, and goods transportation. Notable growth was also seen in IT programming and real estate. - Labor & Backlogs: Employment declined due to retirements, resignations, and contract expirations, while backlogs of work decreased at a faster rate. - Sentiment: The 3-month outlook is positive, buoyed by an expected surge in tourist arrivals for the upcoming Perahera season, despite lingering global uncertainties.