Sri Lanka PMI: Services Surge While Manufacturing Moderates in June 📈

Sri Lanka’s economic activity expanded in June 2026, driven by a strong services sector, though manufacturing growth slowed down, according to provisional Central Bank of Sri Lanka (CBSL) data. Key Highlights • Manufacturing Sector: The Manufacturing PMI slowed to 53.0 in June (down from 56.6 in May), indicating continued but moderated expansion. • Production was primarily driven by the food & beverages sector. • New Orders and Employment remained neutral, with firms highlighting persistent skilled labor shortages and rising labor costs as key bottlenecks. • Companies increased their Stock of Purchases to build inventory against supply chain volatility. • Services Sector: The Services PMI strengthened to 58.5 in June (up from 56.9 in May), showing robust expansion. • Business growth was led by financial services, insurance, and professional services. • New Businesses grew to 62.5 (up from 58.0 in May). • Employment rebounded to 54.0 (up from 49.4 in May) as firms expanded their workforce. • Outlook: Expectations for the next quarter remain positive for both sectors. Services are expected to be boosted by the upcoming tourism surge from the Kandy Esala Perahera. However, global uncertainties and supply risks from the ongoing Middle East conflict pose downside challenges.