October 16, Colombo (LNW): Sri Lanka’s economic performance showed signs of continued recovery in September 2025, with notable gains recorded across both the manufacturing and services sectors, according to new data released by the Central Bank of Sri Lanka.
The latest figures reveal that the country’s Manufacturing Purchasing Managers’ Index (PMI) advanced to 55.4, while the Services PMI rose to a stronger 58.7. A PMI reading above 50 typically signals an expansion in activity compared to the previous month, suggesting that business confidence and economic activity remain on a positive trajectory.
The uplift in manufacturing was largely driven by broad-based gains across most key components of the index. Improvements were observed in areas such as new orders, production levels, and stock of purchases—each contributing to the overall upward momentum. However, the employment sub-index continued to lag behind, indicating that hiring in the sector remains cautious despite the uptick in production.
Meanwhile, the services sector saw robust growth, buoyed by increased demand and a steady flow of business activity, particularly in areas such as transportation, wholesale and retail trade, and financial services. The strength of the services PMI underscores a continued recovery in consumer and corporate spending, reflecting broader optimism in the domestic economy.
These figures come amid a gradually stabilising economic environment, as Sri Lanka continues its path of post-crisis recovery, supported by policy reforms and improving investor sentiment. The positive trend in both sectors provides a much-needed boost to overall economic morale, though structural challenges such as labour market rigidity and inflationary pressures still loom in the background.
