Sri Lanka, June 17 -- Private sector activity regained momentum in May, with both manufacturing and services expanding after a softer April, although businesses remained wary of risks linked to the escalating conflict in the Middle East.

The latest Purchasing Managers' Index (PMI) survey released by the Central Bank showed the Manufacturing PMI rose to 56.6 in May, while the Services PMI climbed to 56.9, signalling a broad-based improvement in economic activity across the two key sectors.

The manufacturing sector was supported by stronger demand for food and beverages as well as textiles and apparel, with firms reporting higher new orders and production during the month. The increase in output was also aided by a higher number of worki...