ECONOMYNEXT – Sri Lanka business activities in manufacturing recovered in May 2025, with the Purchasing Managers Index compiled by the central bank registering a value of 55.5, up from the previous month’s 40.1, but respondents remained cautious about the upward revision in the electricity tariffs and the global situation.
“All sub-indices rebounded above the neutral threshold during the month, indicating a recovery from the seasonal slowdown recorded in April 2025,” the central bank said.
Industry expectations for the next three months remain positive, CBSL said, anticipating a gradual increase in demand.
“However, respondents are cautious about the upward revision in the electricity tariffs and the tense situation in the Middle East.”
The increase in new orders, to 56.5 in May from 36.5 in April, and production, to 55.5 in May from 30.0 April, was attributed to the manufacture of textiles and wearing apparel sector.
The recovery in employment, to 56.0 in May from 44.9 in April, was also attributed to the manufacture of textiles and wearing apparel sector.
Stock of purchases registered 50.0 in May from 41.0 in April.
The stock of purchases sub-index also declined in April registering 41.0, after the previous month’s 62.0.
Suppliers’ delivery time lengthened further in May to 56.7 from 57.0 in April. (Colombo/Jun17/2025)
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