FX.co ★ Sri Lanka Services Activity Slows

Sri Lanka’s Services PMI eased to 60.5 in September 2026 from 65.6 in August, while remaining firmly in expansionary territory for a fifth consecutive month. Business activity continued to grow, though at a slower pace, supported by broad-based improvements, particularly in financial services, with notable contributions from education and professional services. New business inflows also rose further, underpinned by ongoing gains across these sectors. Employment increased as firms in several industries ramped up recruitment to meet operational needs and facilitate business expansion. Meanwhile, backlogs of work continued to decline, albeit more gradually. Looking ahead, business sentiment for the next three months remained positive, supported by favourable macroeconomic conditions, rising tourist arrivals, and the upcoming festive season. However, heightened global uncertainties continued to pose risks to the outlook.