September 16, Colombo (LNW): Sri Lanka’s economic activity showed continued signs of resilience in August 2025, with both the manufacturing and services sectors maintaining their growth trajectories, according to the latest data released by the Central Bank of Sri Lanka (CBSL).
The Manufacturing Purchasing Managers’ Index (PMI) registered a value of 55.2 for the month, suggesting ongoing expansion within the sector, though at a slightly moderated pace compared to July. A PMI reading above 50 typically indicates growth, and August’s figure points to steady, if not accelerated, industrial activity.
Key contributors to this growth were the increases recorded in the New Orders and Production sub-indices, largely driven by the performance of the food and beverages sector. Stockpiling of raw materials also saw an uptick, with the Stock of Purchases sub-index moving in tandem with the rise in production and new orders—suggesting firms are preparing to meet continued demand in the coming months.
Employment within the manufacturing sector remained positive, reflecting stable hiring conditions and increased production capacity. However, suppliers’ delivery times continued to be a challenge, with businesses reporting extended delays, particularly in international shipping. While these logistical bottlenecks are not new, they appear to have persisted, creating planning difficulties for some manufacturers.
Meanwhile, the services sector delivered a notably strong performance, with the Services PMI reaching 68.9—well above the threshold for growth. This marks a continuation of the expansion trend observed over the past year, highlighting ongoing strength in sectors such as hospitality, transport, retail, and financial services.
Business activity across services was supported by broad-based improvement across multiple industries, with sustained consumer demand and increased tourism inflows playing a role in the upbeat outlook.
According to the Central Bank, all key sub-indices for both manufacturing and services remained firmly above the neutral 50 mark, reinforcing the overall picture of economic expansion.
Looking ahead, expectations for manufacturing remain optimistic, particularly in light of anticipated year-end seasonal demand. Businesses across both sectors appear to be positioning themselves for a busy final quarter, although ongoing global supply chain disruptions could temper some of that momentum.
