In November 2025, Sri Lanka's Services Purchasing Managers' Index (PMI) slightly declined to 50.5, down from 66.0 in the previous month. This marks the lowest reading since April 2023, indicating that while service sector activities are still expanding, the growth rate has significantly slowed. The increase in activity was largely driven by the accommodation, food, and beverage sectors. However, adverse weather conditions towards the month's end had a negative impact on overall performance.
The index for new businesses rose to 53.6 from 61.5 in October, driven by heightened demand for financial services and an uptick in wholesale and retail trade activities. Employment levels saw a boost (at 55.7 compared to 52.5 previously) as companies hired additional staff to manage seasonal operational needs. The backlogs of work index increased to 51.1, reversing a three-month downward trend.
Looking forward to the next quarter, expectations for business activities improved to 63.3 from 84.2, although the pace of improvement has moderated. Some respondents expressed concerns about potential disruptions in consumer demand due to adverse weather conditions.
