KNOWLEDGE HUB

Tuesday, August 18 2026

Tuesday, August 18 2026

Sri Lanka Manufacturing Expands in July : PMI

Published Tuesday, 18th August 2026 5:32 AM

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MONETABRIEF – Sri Lanka's manufacturing has expanded in July 2026, with a Purchasing Managers' Index recording 55, the central bank which compiles it said.

"The overall expansion in the New Orders and Production subindices was primarily driven by robust performance within the food and beverage manufacturing sector," the central bank said.

"Reflecting positive expectations for manufacturing activities, both the Employment and Stock of Purchases sub-indices remained expanded in July.

"Meanwhile, Suppliers’ Delivery Time remained lengthened during the month, pointing to persistent supply-chain pressures."

"The manufacturing sector remained optimistic about the next three months, while maintaining caution amid global uncertainties."

Sri Lanka rupee collapsed in the first quarter of 2026. Collapsing currencies push up the cost of industrial inputs, but gives a temporary profits by underpaying workers (competitive exchange rates) at social cost and political discontent.

As inflation hit the people domestic demand can also fall. (Colombo/Aug18/2026)

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