Manufacturing Miracle on Pause: Sri Lanka’s PMI Drops 24 Points in One Month

Sri Lanka's local manufacturing industry fell steeply in April 2025, with the Manufacturing Purchasing Managers' Index (PMI) falling to 40.1 index points, a long way from the strong 63.9 in March. The sector had posted a four-year high for the previous month, with favorable seasonally related demand and steep increases in new orders and production, primarily in food, beverages, and textiles.

 

The steep decline in April marks a loss of momentum, indicating challenging times for manufacturers in the face of rising uncertainties in global trade. Export-oriented businesses are particularly wary of the outside world, although hopes of future intervention have been positive following March's recovery.

 

The PMI, compiled by the Central Bank of Sri Lanka, is a leading indicator of the health of the manufacturing sector, with readings over 50 suggesting expansion and readings under 50 suggesting contraction. The April reading emphasizes the uncertainty that faces the sector and the need to closely monitor the situation in the subsequent months.

 

Source: Central Bank of Sri Lanka