PMI Manufacturing and Services indices indicate expansions in January 2025

• PMI – Manufacturing recorded an index value of 59.0
• PMI – Services recorded an index value of 58.5

Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 59.0 in January 2025, indicating a further expansion in manufacturing activities, the Central Bank said yesterday.

All the sub-indices contributed positively to this improvement. 

Most of the survey participants from the manufacture of textiles and apparel sector reported favourable developments in January, driving the expansions in the New Orders, Production, Employment and Stock of Purchases sub-indices. 

In addition, the manufacture of food and beverages sector continued to remain positive, even after the December festival season. Meanwhile, the Suppliers’ Delivery Time sub-index further increased in January, in line with the increase in activity levels. 

The outlook for manufacturing activities for the next three months remains positive, anticipating improved business conditions.

Meanwhile, Sri Lanka Purchasing Managers’ Index for Services (PMI – Services) recorded an index value of 58.5 in January 2025, indicating a slower expansion in services activities.

The expansion in Business Activities was driven by the improvements observed across most of the sectors. Accordingly, the business activities in financial services continued to improve, supported by the increased lending activities. 

Further, the business activities in the accommodation, food and beverage sector also showed a considerable improvement during January 2025, driven by the steady growth in tourist arrivals. 

The education, professional services and transportation-related business activities also recorded improvements during the month. 

New Businesses increased in January 2025, primarily due to the expansions observed in the financial services, transportation and accommodation, food and beverage-related activities.

Employment continued to increase amid recruitments across many companies. Meanwhile, Backlogs of Work declined on a month-on-month basis, following the increase recorded in the previous month. 

Expectations for Business Activities for the next three months continued to improve amid the expected seasonal demand and favourable macroeconomic conditions.