Sri Lanka’s Manufacturing Sector Shows Strong Growth in July

Sri Lanka’s manufacturing sector recorded robust expansion in July 2025, with the central bank’s Purchasing Managers Index (PMI) rising to 62.2, indicating stronger activity across the industry.

According to the central bank, all sub-indices contributed positively to the overall improvement. Growth in new orders and production was largely driven by strong performances in the food and beverages, as well as textiles and apparel sectors. The employment sub-index also returned to positive territory, reflecting a rebound in hiring within the industry.

Stocks of purchases rose further, signaling increased business confidence and readiness to meet demand. Despite these gains, suppliers’ delivery times remained extended, highlighting ongoing challenges in the supply chain.

The central bank noted that while manufacturers remain optimistic about the next three months, they are cautious due to uncertainties in global trade. Analysts say the strong PMI reading suggests that domestic production is regaining momentum, offering a positive signal for economic recovery and industrial growth.

This uptick in manufacturing performance aligns with broader efforts to boost industrial output and export competitiveness, providing a welcome boost to Sri Lanka’s economy amidst a backdrop of global economic volatility.

 

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