FX.co ★ Sri Lanka Services PMI Signals Strong Expansion

Sri Lanka's Services PMI surged to 67.9 in December 2025 from 50.5 in November, signifying robust growth in the service sector. This boost was primarily attributed to increased activity in wholesale and retail trade due to heightened demand during the festive season, along with gains in business-related activities, as well as accommodation and food and beverage services. New businesses recorded an increase to 64.9 from 53.6, driven by improved activities in wholesale and retail sectors and enhanced performance in financial services. Employment growth experienced a slowdown, with the index slightly decreasing to 52.6 from 55.7. Concurrently, the Backlogs of Work continued their upward trend for the second month in a row, climbing to 53.8 from 51.1. Looking forward, the outlook for business activity in the upcoming quarter appears positive, buoyed by favorable macroeconomic conditions, seasonal tourism trends, and the stabilization of weather-related disruptions.