Sri Lanka’s manufacturing and services expand last month at slower pace

Sri Lanka’s manufacturing and services sectors expanded in January 2026, though at a slower pace than December’s seasonal peak, according to the Central Bank of Sri Lanka.

Manufacturing PMI declined to 56.1 from 60.9 in December but remained in expansion territory, supported by growth in New Orders, Production, and Employment. Services PMI eased to 64.5 from 67.9, driven by Wholesale and Retail Trade, Accommodation, and Financial Services.

Employment rose across both sectors, while supplier delivery times lengthened in manufacturing. Backlogs of Work in services declined after December’s increase.

The CBSL said expectations for the next three months remain positive, citing favourable macroeconomic conditions and seasonal demand.

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