Sri Lanka manufacturing contracts in April 2026: PMI

Monday May 18, 2026 11:37 pm

ECONOMYNEXT – Sri Lanka’s manufacturing sector contracted in April, registering a value of 42.6 on a Purchasing Managers Index compiled by the central bank, compared to 66.7 the previous month.

“Sub-indices declined during the month compared to the seasonal peak in March, resulting in an overall contraction in the index,” CBSL said.

The contraction in the New Orders sub-index was attributed to fading festive demand, particularly in the manufacture of food and beverage and textiles and apparel sectors.

The Production sub-index declined due to fewer working days in April, CBSL said, as many manufacturing facilities were closed during the holiday period.

“The Employment sub-index declined as manufacturers scaled back temporary workforces following the end of the seasonal labour requirements.”

Suppliers’ Delivery Time lengthened, driven by festive-related disruptions and heightened logistical challenges stemming from the conflict in West Asia. (Colombo/May18/2026)

Monday May 18, 2026 11:59 pm

ECONOMYNEXT – Sri Lanka’s services sector contracted in April 2026 due to seasonal impacts following the festive period and the increase in energy prices, according to a Purchasing Managers Index compiled by the central bank which registered an index value of 46.7, compared to 59.4 the previous month.

New businesses declined in April 2026 for the first time since April 2023, CBSL said, due to deteriorations observed in transportation of goods, insurance, wholesale and retail trade, and accommodation, food and beverage service activities.

“Business activities declined across most of the sectors during the month, primarily due to rising fuel prices, festive season holidays, and the slowdown in tourist arrivals.”

The transportation of goods and other personal service activities sub-sectors recorded the steepest contraction, while insurance, wholesale and retail trade, and accommodation, food and beverage service activities also reporting notable downturns, CBSL said.

Employment declined due to contract expirations, retirements and resignations.

Backlogs of work also continued to decline. (Colombo/May18/2026)

Monday May 18, 2026 5:10 pm

ECONOMYNEXT – There was no spot closing quote for Sri Lanka’s rupee on Monday after trades at 326.50 (low) and 327.50 (high) to the dollar in the day, dealers said, while bond yields closed up.

The telegraphic transfer rate for the dollar was 327.5000 buying, 334.5000 selling.

A bond maturing on 15.12.2027 closed at 9.10/30 percent, up from 9.00 percent.

A bond maturing on 15.03.2028 closed at 9.65/75 percent, up from 9.60/70 percent.

A bond maturing on 15.12.2028 closed at 9.80/90 percent, up from 9.75/85 percent.

A bond maturing on 15.12.2029 closed at 10.00/10 percent, up from 9.95/10.05 percent.

A bond maturing on 01.08.2030 closed at 10.20/30 percent, up from 10.12/20 percent.

A bond maturing on 15.12.2032 closed at 10.80/90 percent, up from 10.70/80 percent.

A bond maturing on 01.11.2033 closed at 11.10/20 percent, up from 10.95/11.05 percent.

A bond maturing on 15.06.2034 closed at 11.25/35 percent, up from 11.17/20 percent. (Colombo/May18/2026)

Monday May 18, 2026 4:00 pm

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Monday trading, with selling pressure coming in brokers said.

ASPI was down 2.59 percent, or 592.28 points, at 22,313.47.

S&P SL20 was down 1.95 percent, or 122.26 points, at 6,161.98.

“We are seeing a long overdue sell today,” Asia Securities brokers said.

“Global markets aren’t looking great, the Indian market was down 10 percent.”

Ceylinco Insurance (up 2.03 percent at Rs.3,170.00) was a positive contributor to ASPI.

John Keells Holdings (down 1.93 percent at Rs.20.30), RIL Property (down 8.25 percent at Rs.26.70), Hayleys (down 2.58 percent at Rs.235.75), Commercial Bank of Ceylon (down 1.55 percent at Rs.206.25), and Colombo Dockyard (down 6.13 percent at Rs.130.25) were negative contributors to ASPI.

Analysts also noted that towards the end of the trading window, news of peace talks between Iran and the United States have been reported, and the market might reflect that during tomorrow’s trading session.

Market turnover was 4.89 billion rupees. Capital goods led turnover with 1.54 billion rupees.

Lion Brewery Ceylon released its financials for the March 2026 quarter, reporting a profit of 2.4 billion rupees, up 23 percent from 2024. Its shares closed at Rs.1,846.75, down 0.12 percent.

Ceylon Beverage Holdings likewise released its reports, declaring a profit of 49.6 million rupees, compared to the 41.2 million rupees made in 2024. Its shares closed at Rs.2,790.00, down 2.98 percent. (Colombo/May18/2026)

Monday May 18, 2026 3:54 pm

ECONOMYNEXT –Sri Lanka’s Deputy Finance Minister Anil Jayantha has urged the public to cut fuel consumption amid higher oil imports have put depreciation pressure on the rupee currency despite fuel rationing in place.

The island nation has raised fuel prices four times totally by around 40 percent since the Middle Eastern escalation started on February 28. It also has reintroduced a fuel quota system through a QR code method which was in place during the country’s 2022 economic crisis.

“Likewise due to the price increase, we have to pay more dollars and in the early stage due to the volume increase as well,” Deputy Minister Jayantha told reporters on Saturday (17) at a media briefing in Colombo.

“Now the volume increase is gradually coming down to the normal the level, but it is advisable from a the country’s point of view to economize your personal value use,” he said.

“Even though the volume would be at the normal level, we still have to pay a higher price. So how best we can tackle this issue is if we can further reduce the consumption on our own behaviour, and if necessary, the government also would that take some other measures.”

“And if the volume can be reduced from the normal level, then the fuel bill can be managed within the (expected) forex level.

Already, Sri Lanka’s state-owned fuel retailer has spent $1 billion for fuel imports in the first four months of this year, compared to “1.5 billion it spent for the full year in 2025.

Monday May 18, 2026 10:00 am

ECONOMYNEXT – Sri Lanka is likely to see a current account deficit this year, bucking the trend for the first time in four years, due to higher dollar outflows than inflows amid expensive global oil prices, a top Central Bank official said.

Since the Middle Eastern escalation started on February 28 this year, the island nation has been paying a higher amount for oil imports due to the spike in the global crude prices.

“We’ve had surpluses for three years. For this year, we are expecting a small deficit in the current account,” Deputy Central Bank Governor Chandranath Amarasekara told the Parliament’s Committee of Public Finance (COPF) on Thursday (14).

“So essentially, if you look at current inflows and outflows, we are expecting outflows greater than inflows this year, mainly because of what is happening in the global economy and particularly with higher oil prices.”

“Obviously, there will be a higher oil bill that we will have to face.”

Sri Lanka’s current account balance underwent a dramatic transformation over the last four years, shifting from deep distress to a fragile, policy-induced recovery.

In 2022, at the absolute nadir of the financial crisis, the current account recorded a deficit of approximately $1.4 billion as foreign reserves dried up, prompting severe import controls.

By 2023, a sharp collapse in import demand, combined with an initial rebound in tourism and worker remittances, pushed the current account into a rare surplus of $1.43 billion.

This positive momentum was sustained into 2024 with $1.21 billion surplus and in 2025 with $1.72 billion, driven heavily by buoyant tourism receipts and robust secondary income inflows that masked a widening structural trade deficit in goods. (Colombo/May 18/2026)

Monday May 18, 2026 9:57 am

ECONOMYNEXT – There was no spot quote for Sri Lanka’s rupee early Monday, while bond yields edged up slightly, dealers said.

The telegraphic transfer rates for the American dollar were 326.5000 buying, 333.5000 selling; the British pound was 433.4209 buying, and 444.8973 selling, and the euro was 376.7447 buying, 388.3319 selling.

A bond maturing on 15.12.2029 was quoted at 9.95/10.00 percent, down from 9.95/10.05 percent.

A bond maturing on 01.08.2030 was quoted at 10.10/20 percent, from 10.12/20 percent.

A bond maturing on 01.06.2033 was quoted flat at 10.90/11.00 percent.

A bond maturing on 15.06.2034 was quoted at 11.15/20 percent, up from 11.17/20 percent.

A bond maturing on 15.08.2036 was quoted flat at 11.25/40 percent.

On the Colombo Stock Exchange, meanwhile, the All Share Price Index was down 1.59 percent, or 363.27 points, at 22,542; while the S&P SL20 was up 1.24 percent, or 78.05 points, at 6,206. (Colombo/May18/2026)