Sri Lanka Services Activity Slows

2026-10-15 11:11 By Larissa Caser 1 min. read

Sri Lanka’s Services PMI declined to 60.5 in September 2026 from 65.6 in the previous month, although remaining in expansionary territory for a fifth consecutive month.

Business activity continued to expand, albeit at a slower pace, reflecting improvements across several sectors, particularly financial services and with notable contributions from education and professional services.

New businesses also increased further, supported by continued improvements across these sectors.

Employment rose as firms across several industries stepped up recruitment to meet operational requirements and support business expansion.

Meanwhile, backlogs of work continued to decline, although at a slower pace.

Looking ahead, business sentiment regarding activity over the next three months remained positive, underpinned by favourable macroeconomic conditions, rising tourist arrivals, and the approaching festive season.

Nevertheless, broader global uncertainties continued to pose risks to the outlook.



News Stream
Sri Lanka Services Activity Slows
Sri Lanka’s Services PMI declined to 60.5 in September 2026 from 65.6 in the previous month, although remaining in expansionary territory for a fifth consecutive month. Business activity continued to expand, albeit at a slower pace, reflecting improvements across several sectors, particularly financial services and with notable contributions from education and professional services. New businesses also increased further, supported by continued improvements across these sectors. Employment rose as firms across several industries stepped up recruitment to meet operational requirements and support business expansion. Meanwhile, backlogs of work continued to decline, although at a slower pace. Looking ahead, business sentiment regarding activity over the next three months remained positive, underpinned by favourable macroeconomic conditions, rising tourist arrivals, and the approaching festive season. Nevertheless, broader global uncertainties continued to pose risks to the outlook.
2026-10-15
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Sri Lanka’s Services PMI rose to 65.6 in August 2026 from 61.4 in July, marking the highest level since December of 2025 and expanding for a fourth consecutive month. Growth was supported by stronger performance across sectors, primarily in transportation, wholesale and retail trade, and professional services. This was also reflected in assessments of new business, which increased, albeit at a slightly slower pace than in the previous month. Employment rose, supported by new recruitment, while backlogs of work declined. Looking ahead, firms remained optimistic, supported by expectations of higher tourist arrivals. However, sentiment weakened as broader economic uncertainty continued to pose downside risks.
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