Purchasing Managers’ Indices indicate the seasonal contraction in Manufacturing activities and an expansion in Services activities in April 2025.

Following the seasonal pattern, Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) declined to 40.1 in April 2025. The key sub-indices of Production, New Orders, Stock of Purchases and Employment contracted during the month, resulting in an overall decline in the index compared to the seasonal peak in March.

According to the respondents, the contraction in the New Orders sub-index was mainly attributed to the fading festive season demand, particularly in the food and beverage sector. Further, the decline in the Production sub-index was largely a result of fewer working days in April, as many manufacturing facilities temporarily halted their operations during the Sinhala and Tamil New Year season. The Employment sub-index declined, as manufacturers scaled back temporary workforces following the seasonal production requirements. Moreover, the Stock of Purchases sub-index also declined in April, alongside the decreases in the New Orders and Production. Meanwhile, Suppliers’ Delivery Time further lengthened in April, mainly due to the disruptions to supply chains during the festive season.

Outlook for manufacturing activities for the forthcoming three-month period remains optimistic due to the anticipated improvements in demand conditions.