Sri Lanka’s Services PMI climbed to 65.6 in August 2026 from 61.4 in July, reaching its highest reading since December 2025 and signaling expansion for the fourth consecutive month. The upturn was driven by stronger activity across several key sectors, particularly transportation, wholesale and retail trade, and professional services.
This sectoral momentum was mirrored in new business, which continued to grow, though at a slightly slower pace than in the previous month. Employment increased on the back of fresh recruitment, while backlogs of work moved lower, indicating improved capacity to meet demand.
Looking ahead, firms remained broadly optimistic, buoyed by expectations of higher tourist arrivals. Nonetheless, overall sentiment softened somewhat, as ongoing economic uncertainty continued to present notable downside risks.
