Sri Lanka manufacturing PMI data for November 2025 points to continued sectoral expansion, though at a notably slower pace, reflecting moderating demand conditions and stabilising production levels as manufacturers navigate seasonal shifts and supply-side pressures.
Sri Lanka manufacturing PMI shows continued expansion despite easing momentum in November
Sri Lanka’s manufacturing sector maintained its expansionary trajectory in November 2025, albeit with reduced momentum, according to the latest Purchasing Managers’ Index (PMI) released by the Central Bank of Sri Lanka. The headline PMI eased to 55.5 in November from 61.0 in October, signalling growth on a month-on-month basis while highlighting a moderation in the pace of activity across key sub-indicators.
A PMI reading above the neutral threshold of 50 indicates expansion, and the central bank noted that all sub-indices continued to contribute positively to overall manufacturing performance. However, the deceleration suggests that the sector is transitioning from a phase of strong post-seasonal acceleration toward more measured and sustainable growth.
The New Orders sub-index remained a key driver of expansion during the month. Increased manufacturing activity in the food and beverages sector supported order growth, reflecting steady domestic consumption and preparation for year-end demand. The textiles and apparel sector also recorded improved order volumes, underlining the continued relevance of export-oriented manufacturing despite global market uncertainties.
Industry analysts observe that these two sectors have shown relative resilience throughout 2025. Food and beverage manufacturers have benefited from stable local demand and improved supply chain conditions, while textiles and apparel producers have continued to adapt to changing global buyer requirements, focusing on efficiency and value-added production.
Production levels, however, softened in November, returning to a neutral position after expanding in October. The central bank attributed this moderation partly to the unwinding of seasonal demand that had boosted output in the previous month. Manufacturers appear to be aligning production more closely with incoming orders, a shift that may help manage inventories and costs amid a more cautious demand outlook.
Stock of Purchases increased during November but at a slower pace compared to October. This trend suggests that firms remain confident enough to maintain input purchases, yet are exercising restraint in inventory accumulation. Such behaviour is consistent with an environment where demand is growing, but without the urgency that characterised earlier months.
Employment conditions in the manufacturing sector also improved at a reduced rate. While firms continued to add workers, the slower rise indicates a more conservative approach to hiring. Employers are likely balancing the need to meet operational requirements with cost considerations, particularly as wage pressures and productivity concerns remain in focus.
Suppliers’ Delivery Time continued to lengthen during the month, reflecting persistent logistical and supply chain challenges. Extended delivery times can be influenced by factors such as transportation constraints, global shipping disruptions, or cautious supplier behaviour. Although this sub-index remains in expansionary territory, prolonged delivery times can affect production planning and working capital management for manufacturers.
The moderation observed in the November PMI does not necessarily indicate weakness, economists caution. Instead, it reflects a sector adjusting to evolving market conditions after periods of stronger growth. A PMI reading in the mid-50s typically points to healthy expansion, supported by steady orders, manageable inventories, and stable employment trends.
From a macroeconomic perspective, the manufacturing sector’s performance remains a critical pillar of Sri Lanka’s economic recovery. Manufacturing contributes significantly to employment, exports, and value addition, making PMI trends an important forward-looking indicator for policymakers and investors alike.
The central bank has highlighted that favourable contributions from all PMI sub-indices underscore the sector’s underlying strength. Nevertheless, the easing momentum serves as a reminder of the external and domestic factors influencing industrial activity. Global demand conditions, input costs, exchange rate movements, and domestic consumption patterns all play a role in shaping manufacturing outcomes.
Looking ahead, manufacturers are expected to monitor demand trends closely as the year-end period progresses. Any pickup in export orders, particularly from traditional markets, could support renewed acceleration in production. Conversely, adverse weather conditions, global economic headwinds, or supply disruptions may continue to weigh on sentiment.
The Sri Lanka manufacturing PMI will remain a key barometer of industrial health as the country navigates its broader economic adjustment. Sustained expansion, even at a moderated pace, suggests that the sector is on relatively stable footing. For businesses, the current environment underscores the importance of operational efficiency, supply chain resilience, and prudent workforce planning.
In summary, November’s PMI results reflect a manufacturing sector that is expanding, though with tempered momentum. The balance between steady new orders, neutral production growth, cautious inventory management, and measured hiring points to an industry recalibrating after stronger gains earlier in the quarter. As economic conditions continue to evolve, PMI data will provide valuable insight into whether this moderation represents a pause before renewed growth or a shift toward a more sustainable pace of expansion.