Sri Lanka’s manufacturing sector saw a sharp seasonal slowdown in April, with the Purchasing Managers’ Index (PMI – Manufacturing) dropping to 40.1, reflecting a significant contraction in activity compared to the seasonal high recorded in March.
According to the Central Bank’s latest data, key sub-indices such as production, new orders, employment, and stock of purchases all declined during the month. The downturn is largely attributed to reduced demand following the Sinhala and Tamil New Year festive season, particularly in the food and beverage segment.
Manufacturers reported fewer working days in April, as many facilities temporarily closed for the holidays, leading to a dip in production. Employment figures also fell, with companies scaling back on temporary hires brought in to meet seasonal demand.
Additionally, the stock of purchases declined in line with reduced production and order volumes, while suppliers’ delivery times further lengthened due to festive season-related supply chain disruptions.
Despite the April slowdown, industry players remain optimistic about the months ahead. Expectations of improved demand conditions have led to a positive outlook for manufacturing activity over the next quarter.