FX.co ★ Sri Lanka Services PMI Rises in June

Sri Lanka's Services PMI experienced a significant rise, climbing to 61.9 in June 2025 from 57.0 in May, reflecting a strong expansion in service sector activities. This notable growth in new business—rising to 62.9 from 54.0—was predominantly fueled by increased lending in the financial services sector, accompanied by advancements in professional services, insurance, transportation, personal services, and real estate. Employment within the sector also grew (51.6 from 44.0), and there was a recovery in work backlogs (50.0 from 45.0). Moreover, expectations for business activity in the upcoming quarter showed improvement (75.8 from 73.7), buoyed by favorable macroeconomic conditions. Despite this positive outlook, some companies expressed concerns regarding taxation on services offered by non-residents through electronic platforms, US tariffs, and the unfolding situation in the Middle East.