📈 Sri Lanka PMI August 2026: Expansion Continues in Manufacturing & Services

• Overall Headline Figures • Manufacturing PMI: Recorded 53.0 in Aug (vs 55.0 in Jul), indicating continued expansion at a slower rate. • Services PMI: Accelerated to 65.6 in Aug (vs 61.4 in Jul), showing stronger momentum. • Manufacturing Breakdown • Production index fell below neutral to 48.4 (from 54.5 in Jul), mainly driven by a slowdown in textiles & wearing apparel. • New Orders normalized to 50.0 (from 55.9 in Jul). • Employment rose to 54.8 (from 51.0 in Jul) while Stock of Purchases increased to 54.8 (from 51.5 in Jul), reflecting active hiring and inventory buildup for year-end seasonal demand. • Delivery times lengthened to 63.0 due to persistent supply chain disruptions. • Services Breakdown • Growth propelled by high performance in transportation, wholesale & retail trade, and professional services. • Financial services and personal services sub-sectors also delivered strong contributions. • Employment grew to 53.3 (from 52.9 in Jul), supported by new recruitments. • Backlogs of Work dropped to 48.3 (from 51.2 in Jul), clearing previous month backlogs. • Economic Outlook & Key Drivers • Manufacturing outlook remains positive, buoyed by the upcoming year-end seasonal upturn. • Services expectations stay optimistic (71.7), anchored by anticipated economic recovery and expansion in tourism, though global economic uncertainties present near-term downside risks.