FX.co ★ Sri Lanka Factory Activity Growth Slows

Sri Lanka’s Manufacturing PMI eased to 56.1 in January 2026 from 60.9 in December 2025, indicating that manufacturing activity continued to expand, though at a slower pace following the seasonal peak in the previous month. All sub-indices remained above the neutral 50 threshold, confirming sustained growth in the sector.

Growth in new orders (58.5 vs. 63.8 in December) and production (57.5 vs. 61.2) moderated, while employment expansion also softened (51.5 vs. 58.5), pointing to more measured hiring conditions. In contrast, the stock of purchases increased at a faster rate (56.0 vs. 53.7), largely driven by inventory accumulation ahead of the Chinese New Year holidays.

Suppliers’ delivery times remained lengthened, though the degree of delay eased (55.0 vs. 62.5), in line with slower growth in demand. Looking ahead, expectations for manufacturing activity over the next three months remain positive, supported by anticipated improvements in overall business conditions.