Sri Lanka manufacturing, services grow in February.

Sri Lanka’s business activities in manufacturing and services showed continued growth in February 2025, fueled by preparations for the upcoming festive season. The Manufacturing Purchasing Managers’ Index (PMI) recorded 56.8, slightly down from January’s 59.0, indicating sustained expansion. Key sectors, especially food and beverage manufacturing, saw growth in new orders (60.5) and production (53.0), while employment and stock of purchases also rose, showing proactive adjustments to meet increased demand. Supplier delivery times lengthened to 56.6, reflecting pressure on suppliers, though expectations for the next three months remain positive due to the festive season.

The Services PMI recorded 56.5 in February, indicating a slower but continued expansion. The improvement was driven by increased business activities across sectors, particularly financial services, wholesale and retail trade, education, and accommodation. New business activities rose at a slower pace (58.5) compared to January, while employment continued to rise (59.6), as companies prepared for the holiday season. Backlogs of work declined at a higher rate (45.6), signaling improved efficiency.

Looking ahead, expectations for business activities in the next three months are optimistic, with a high index of 81.3 due to the upcoming festive season. This suggests that both manufacturing and service sectors are expected to continue their growth trajectory in the near future.