📈 Sri Lanka PMI Signals Strong March Expansion Amid Seasonal Demand

Sri Lanka’s Purchasing Managers’ Indices (PMI) for both Manufacturing and Services showed significant growth in March 2026, driven largely by festive season requirements despite global geopolitical pressures. • Manufacturing PMI surged to 66.7, up from the previous month. This was fueled by the food and beverages and textile and wearing apparel sectors. New Orders and Production expanded, though manufacturers faced a "tight environment" due to fuel shortages and rising costs. • Services PMI recorded 59.4, indicating steady expansion. Growth was broad-based, led primarily by financial services (increased lending), wholesale and retail trade (festive demand), and professional services. • Employment & Logistics: Employment grew across both sectors, though manufacturing saw a slower pace of hiring. Suppliers' Delivery Times continued to lengthen due to shipping disruptions linked to the Middle East conflict. • Strategic Stockpiling: Firms reported "precautionary stocking" of raw materials to safeguard production against potential supply chain shocks from ongoing global uncertainties. • Outlook: Expectations for the next quarter remain optimistic but cautious. While seasonal demand provides a boost, firms highlighted downside risks from global economic uncertainty and the Middle East conflict.