Sri Lanka’s Services PMI climbed to 61.4 in July 2026 from 58.4 in June, reaching its highest level since January and marking a fourth consecutive month of expansion. This indicates a faster pace of growth in services activity.
New business continued to increase, though at a slightly slower rate (60.2 vs. 62.5), driven mainly by the transportation and professional services sub-sectors, with financial services and other personal services also supporting the overall expansion.
Employment rose further but at a more moderate pace (52.9 vs. 54), reflecting both new hiring and a decline in staff resignations. At the same time, backlogs of work moved deeper into expansionary territory, increasing to 51.2 from a neutral reading in June.
Business expectations for the coming quarter strengthened further, underpinned by anticipated improvements in economic conditions and robust tourist arrivals for the Kandy Esala Perahera. Nonetheless, broader global economic uncertainties continued to pose downside risks to the outlook.
