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17.11.202515:25:24UTC+00Sri Lanka Services PMI Signals Robust Expansion

In October 2025, Sri Lanka's Services Purchasing Managers' Index (PMI) experienced an upswing, rising to 66 from 58.7, indicative of vigorous expansion. This growth spanned various sectors, with wholesale and retail trade at the forefront. Financial services also saw further strengthening due to increased lending activity. Business activity expectations improved, climbing to 84.2 from the previous 81.1, buoyed by favorable macroeconomic conditions, a rise in tourist arrivals, and the anticipated surge in demand associated with the festive season. Although the pace was somewhat slower, new business ventures increased to 61.5, particularly in trade and financial services sectors. Employment figures showed continued growth at 52.5, though at a more moderate rate, as companies adjusted their staffing to align with operational demands. On the other hand, backlogs of work remained in a state of contraction, standing at 47.8.

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