FX.co ★ Sri Lanka Services PMI Slows in February

Sri Lanka’s Services PMI eased to 54.4 in February 2026 from 64.5 in January, indicating a slower pace of expansion. All sub-indices continued to rise but at a reduced rate, with the exception of Backlogs of Work, which contracted. Growth remained broad-based, led by professional and personal services, while accommodation, food, and education sectors sustained their momentum. New Business (53.8 vs 60.8) continued to expand, driven by rising demand for hospitality and personal services. Employment (55.1 vs 59.2) increased as firms hired additional staff to meet consumer demand. Backlogs of Work (47.6 vs 48.9) fell at a faster pace, signaling a sharper decline in outstanding orders. Business Activity Expectations (65.9 vs 76.9) stayed optimistic, underpinned by seasonal demand and planned capacity expansions. However, some firms highlighted downside risks stemming from the conflict in the Middle East and broader global uncertainties.