MONETABRIEF – Sri Lanka's Manufacturing Purchasing Manager's Index was 53 in September, higher than 50, indicating an expansion, the central bank which compiles the index said.
"The expansion in New Orders and Production was largely attributed to positive developments in both the food and beverages and textiles and wearing apparel manufacturing sectors," the central bank said. "Meanwhile, Employment continued to expand, albeit at a slower pace, in September.
"However, the Stock of Purchases moderated towards the neutral threshold, indicating broadly unchanged inventory levels during the month. Further, Suppliers' Delivery Time remained lengthened during the month."
The outlook for manufacturing activities over the next three months remains positive, driven largely by optimism on year-end seasonal demand the central bank said.
Sri Lanka was hit by monetary instability after March 2026 as the central bank denied convertibility to excess liquidity and dishonored its won note issue leading to a collapse of the currency and spike in inflation.
The rupee collapsed amplifying the effects of the Middle East war in the island and inflation reached the central bank's controversial 7 percent level and exceeded it.
The government has controlled prices of fuel and there are now shortages. Nationalist elements are also waking up. (Colombo/Oct19/2026)