Sri Lanka’s manufacturing and services sectors continued to expand in November, although growth moderated from October’s stronger performance, reflecting seasonal adjustments and the impact of adverse weather, according to the latest Purchasing Managers’ Index (PMI) released by the Central Bank of Sri Lanka (CBSL).
The Manufacturing PMI recorded 55.5 in November, remaining firmly in expansionary territory but easing from 61 in October. CBSL noted that growth was broad-based, with all major sub-indices contributing positively, underscoring the sector’s continued role in supporting domestic production, employment, and supply chain activity during the final quarter of the year.
New Orders remained a key driver of manufacturing growth, led by increased activity in the food and beverages sector and the textiles and apparel industry. Manufacturers reported a surge in orders linked to seasonal and festive demand, reinforcing the sector’s importance in meeting domestic consumption needs and sustaining export-oriented industries such as apparel.
Production levels, however, remained broadly unchanged compared to October, suggesting that firms were consolidating output rather than aggressively expanding capacity. Employment and stocks of purchases increased month-on-month, indicating cautious optimism among manufacturers and preparation for near-term demand. Supplier delivery times remained extended, reflecting sustained demand for inputs and continued pressure on logistics and procurement chains.
Despite weather-related disruptions during the month, CBSL said expectations for manufacturing activity over the next three months remain positive, supported by seasonal consumption patterns and stable macroeconomic conditions.
Meanwhile, the Services PMI stood at 50.5 in November, signalling marginal expansion but a sharp slowdown from October’s robust 66. Business activity growth was moderated by adverse weather conditions towards the end of the month, which affected mobility, retail footfall, and tourism-related services.
Accommodation, food, and beverage services remained the primary contributors to services-sector expansion, highlighting the sector’s ongoing recovery and its contribution to employment and regional economic activity. Financial services also continued to strengthen, supported by increased lending activity, reinforcing the sector’s role in facilitating investment, trade, and household consumption.
New business activity improved in November, driven by rising demand for financial services and better performance in wholesale and retail trade. Employment in the services sector continued to grow, reflecting seasonal hiring needs, while backlogs of work increased after three consecutive months of decline, suggesting renewed operational pressure.
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