Sri Lanka Chronicle – In March, Sri Lanka’s manufacturing sector showed continued growth, driven by increased seasonal demand, as indicated by a Purchasing Managers Index (PMI) value of 66.7, up from 56.8 in February, according to the central bank.
Despite this positive trend, many industry participants reported challenges in production, mainly due to shortages of raw materials and fuel, escalating costs, and logistical issues, as noted by the Central Bank of Sri Lanka (CBSL).
All sub-indices experienced growth during the month, with the CBSL reporting notable expansions in the New Orders and Production sub-indices, particularly within the food and beverages and textile sectors.
The Stock of Purchases sub-index also increased, reflecting a rise in production demand. Some companies engaged in precautionary stocking to protect their production lines from potential disruptions stemming from the ongoing conflict in the Middle East.
Supplier delivery times continued to extend due to pressures from demand and disruptions in shipping. Additionally, while the Employment Index increased, its growth rate slowed.
Looking ahead, expectations for manufacturing activities in the upcoming quarter remained above neutral levels, although they were somewhat tempered by uncertainties related to the current conflict in the Middle East. (Colombo/Mar17/2026)
