Sri Lanka Manufacturing PMI Rises to 66.7 in March 2026

SL Purchasing Managers' Index (PMI) - March 2026

Sri Lanka Purchasing Managers' Index for Manufacturing (PMI -

Manufacturing) increased to 66.7 in March 2026, supported by Manufacturing heightened activity related to seasonal demand. However, many respondents reported a tight production environment, mainly attributed to raw material and fuel shortages, rising costs, and logistical constraints. The New Orders and Production sub-indices expanded in March, particularly within the food and beverages and textile and wearing apparel manufacturing sectors. The Stock of Purchases sub-index expanded in line with increasing production demand. Further, some firms reported precautionary stocking to safeguard their production pipelines against potential disruptions due to the ongoing Middle East conflict. The Employment Index expanded, albeit at a slower pace, in March. Meanwhile, the Suppliers' Delivery Time continued to lengthen, particularly due to demand pressures and shipping-related disruptions.

Summary of PMI Manufacturing Direction Global Rising, Slower Rate India Rising, Slower Rate The World Outlook China Rising, Slower Rate US Rising, Higher Rate UK Rising, Slower Rate PMI - Manufacturing Eurozone Rising, Higher Rate

Index 100 Source: S&P Global as of 16 April 2026 ( 1

Releases (spglobal.com))

66.763.9 S&P Global compiles PMIs for over 40 economies 1 56.8Expectations for manufacturing activities over the next quarter 56.8 50remained above the neutral threshold, though somewhat moderated

by uncertainties related to the ongoing Middle East conflict. 66.7 PMI PMI Purchasing Managers' Indices indicate expansions in both Manufacturing and Page 1 of 2 Services activities in March 2026 +/- Direction Mar. Feb. Variable March 2026 Jul-24 Jul-25 Jan-25 Jan-26Jun-24 Jun-25 Oct-24 Oct-25Statistics Department Feb-24Sep-24 Feb-25 Sep-25 Feb-26Apr-24 Apr-25 Dec-24 Dec-25Mar-24 Mar-25 Mar-26Aug-24 Nov-24 Aug-25 Nov-25Rising, Higher Rate + Lengthening, Higher Rate Suppliers' Delivery Time 75.5 + 59.6 May-24 May-25PMI - Manufacturing 66.7 56.8 Rising, Higher Rate Rising, Slower Rate New Orders Stock of Purchases 69.9 + 59.9 55.0 60.0 - Rising, Higher Rate Rising, Slower Rate Production Employment 68.8 + 55.9 54.5 58.6 - Country/Territory 16.04.2026 Summary of the PMI - Manufacturing Survey Increasing rate of growth Increasing rate of contraction worldwide. Source: Central Bank of Sri Lanka Source: Central Bank of Sri Lanka

Sri Lanka Purchasing Managers' Index for Services

(PMI - Services) recorded an index value of 59.4 in March 2026, indicating an expansion in services activities compared to the previous month. The expansion in business activities was supported by broad- based improvements across sectors. The financial services sector remained the primary driver, benefiting from increased lending activity. In addition, wholesale and retail trade showed an expansion due to the festive demand, while professional services and other personal service activities also recorded notable growth. The expansion of new businesses continued in March 2026, driven by the financial service sector, with further support from significant growth in insurance and pension funding activities. Employment increased further in March 2026, as firms expanded their workforce to meet rising consumer demand ahead of the festive season. Backlogs of work continued to decline, though the pace of contraction moderated during the month.

Expectations for Business Activity over the next quarter remained robust, supported by seasonal demand and new opportunities that could arise despite uncertainties in the current geopolitical environment. However, some firms highlighted downside risks to outlook, including the impact of the Middle East conflict and broader global economic uncertainty.

Technical Note

Methodology

Questionnaires are completed in the first half of the succeeding month. For each variable, respondents are asked to report an increase, decrease or no change compared with the previous month, and to provide reasons for any changes. The index compilation and interpretation of indices follow the survey methodology of S&P Global.

PMI - Manufacturing, which is considered as the headline index for Manufacturing, is a weighted average of New Orders, Output,

The World Outlook Employment, Suppliers' Delivery Time and Stocks of Purchases. PMI - Services (Business Activity Index)The Services Business Activity Index is the headline index for Services, which is referred to as the PMI - Services, as per the international Summary of PMI Services Indexbest practices. The Services Business Activity Index is comparable to the Manufacturing Production Index. 100 The Index

PMI is calculated as a 'Diffusion Index', where it takes values between 0 and 100. 69.8PMI=50 - sector remained neutral on a month-on-month basis

PMI>50 - sector is generally expanding on a month-on-month basis 59.4 56.5 54.4PMI<50 - sector is generally declining on a month-on-month basis 50Sample

The sampling frame was based on a list of large companies located in the Western province obtained from the EPF Department. Samples for

Manufacturing and Services activities were selected based on the GDP sectoral share, with a target of 100 responses for each. PMI 59.4 Definitions of Variables

Employment : Number of staff working for the organization Services Stock of Purchases : Raw materials purchased and kept in a warehouse to be used for production

Page 2 of 2 Supplier Delivery Time : Time lag between order placement and delivery by the supplier Business Activity Index Jul-24Jul-25Jan-25Jan-26Jun-24Jun-25Oct-24Oct-25Feb-24Sep-24Feb-25Sep-25Feb-26Apr-24Apr-25Dec-24Dec-25Mar-24Mar-25Mar-26Aug-24Nov-24Aug-25Nov-25May-24May-25Backlogs of Work : Uncompleted orders Source: S&P Global as of 16 April 2026 (PMI PMI - Services March 2026 54.4 Rising, Higher Rate + 59.4 Variable Increasing rate of growth Backlogs of Work Expectations for Activity + Falling, Slower Rate - Rising, Slower Rate 47.6 65.9 48.1 57.1 Increasing rate of contraction Country/Territory Direction Global Rising, Slower Rate US Falling from Rising India Rising, Slower Rate China Rising, Slower Rate UK Rising, Slower Rate Eurozone Rising, Slower Rate Employment - Rising, Slower Rate 55.1 54.2 Other variables are self-explanatory. Summary of the PMI - Services Survey Releases (spglobal.com)) New Businesses + Rising, Higher Rate 53.8 57.6 +/- (Business Activity Index) Feb. Source: Central Bank of Sri Lanka Mar. Direction Source: Central Bank of Sri Lanka