Sri Lanka’s Manufacturing Purchasing Managers’ Index (PMI) rose sharply to 66.7 in March from 56.8 in February, signalling a strong acceleration in factory activity, according to the data issued by the Statistics Department. Growth was led by higher new orders (69.9) and production (68.8), particularly in the textile and wearing apparel sectors.

Firms also increased stock purchases to support rising output, with some resorting to precautionary inventory building amid concerns over disruptions linked to the ongoing Middle East conflict, the Central Bank of Sri Lanka said in a press release.

Despite robust demand, manufacturers reported a constrained operating environment due to raw material and fuel shortages, rising input costs, and logistical challenges. Supplier delivery times lengthened significantly to 75.5, reflecting shipping disruptions and demand pressures. Employment rose at a slower pace, indicating cautious hiring despite increased workloads.

Looking ahead, business expectations for the next quarter remain positive across sectors, supported by seasonal trends and emerging opportunities. However, concerns persist over the impact of the Middle East conflict, supply disruptions, and broader global economic uncertainty, which may weigh on future momentum.

Fibre2Fashion News Desk (SG)