Sri Lanka’s manufacturing and services sectors continued to demonstrate resilience in June, with the latest Purchasing Managers’ Index (PMI) figures indicating sustained business expansion despite growing external uncertainties.

According to the latest survey, the PMI for Manufacturing recorded an index value of 53.0, signalling continued growth in manufacturing activity, although at a more moderate pace than the previous month. Production remained on an upward trajectory, supported primarily by the food and beverages sector, while new orders remained broadly stable.

Manufacturers continued to build inventories, reflecting efforts to manage supply chain uncertainties and maintain production continuity. However, businesses reported ongoing challenges, including shortages of skilled labour, rising labour costs and longer supplier delivery times amid a volatile global supply environment.

Business confidence within the manufacturing sector remained positive, although expectations softened due to uncertainties arising from unrest in the Middle East, which continues to influence global trade and supply chains.

Meanwhile, the PMI for Services recorded a robust 58.5, indicating stronger expansion in services activity compared with the previous month. Growth was driven by broad based improvements across the economy, led by the financial and professional services sectors, while the insurance industry also recorded notable gains.

The latest PMI results suggest that Sri Lanka’s private sector continues to build momentum as economic conditions improve, supported by resilient domestic demand and expanding business activity. However, industry participants remain cautious over external geopolitical developments and labour market constraints that could influence future performance.

Overall, the findings reflect a positive outlook for Sri Lanka’s economy, with both manufacturing and services sectors continuing to play a vital role in supporting business confidence, investment and sustainable economic growth.