Sri Lanka’s services sector continued to expand in September 2025, though at a slower pace, with the Purchasing Managers’ Index (PMI) compiled by the Central Bank registering 58.7, down from 68.9 in August.
According to the Central Bank, business activities remained strong during the month, driven primarily by robust performance in the wholesale and retail trade sectors. “Business activities related to financial services also continued to improve, underpinned by increased lending activity,” the Bank said.
The New Businesses Index rose at a slower rate, recording 65.2 compared to 66.8 in August, reflecting moderate growth in wholesale, retail, and financial services activities.
Employment in the services sector also grew at a slower pace, registering 53.1 against 57.0 in August, as many firms hired additional staff to meet operational needs. Meanwhile, the Backlogs of Work Index fell slightly to 47.8, from 49.4 in the previous month.
Looking ahead, the Central Bank noted that business confidence remains positive, with expectations for the next three months improving amid favourable macroeconomic conditions, rising tourist arrivals, and the anticipated boost from the upcoming festive season.
