Sri Lanka’s manufacturing sector experienced a moderate expansion in January, as indicated by a Purchasing Managers Index (PMI) value of 56.1, according to data from the central bank. This marks a deceleration from the seasonal peak observed in the preceding month.

Despite the slowdown, all sub-indices stayed above the neutral threshold during the month, the Central Bank of Sri Lanka (CBSL) reported. Notably, the Stock of Purchases saw a month-on-month increase, which is primarily attributed to inventory buildup in anticipation of the Chinese New Year holidays.

Additionally, the sub-indices for New Orders, Production, and Employment continued to expand in January. Both the Employment and Stock of Purchases sub-indices also experienced growth.

However, the Suppliers’ Delivery Time sub-index remained extended throughout the month, reflecting ongoing challenges in supply chain efficiency.