The services sector PMI in Sri Lanka fell to 52.6 in November of 2018 from 55.5 in the previous month, pointing to the weakest growth in the services sector since the series began in May of 2015. Slower increases were recorded for new businesses (53.4 from 58.2) and employment (52.3 from 55.4) and expectations for activity also worsened (55.1 from 63.6) due to the current political situation in the country and uncertainty on future policies. Also, backlogs of work continued to fall although at a lower rate (44.6 from 43.1). On the other hand, business activity (57.4 from 57.1) increased faster, namely wholesale & retail trade and accommodation, food & beverage due to the upcoming festive season and the peak in tourism season. Prices charged increased due to the depreciation of the local currency. However, some respondents cited that the recent reduction in fuel prices would cause a less than expected increase in their output prices. Services Pmi in Sri Lanka averaged 58.34 from 2015 until 2018, reaching an all time high of 66.80 in May of 2015 and a record low of 52.60 in November of 2018.
Services Pmi in Sri Lanka is expected to be 57.90 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Services Pmi in Sri Lanka to stand at 56.50 in 12 months time. In the long-term, the Sri Lanka Services PMI is projected to trend around 56.90 in 2020, according to our econometric models.