FX.co ★ Sri Lanka Services PMI Slows in September

In September 2025, Sri Lanka experienced a decline in its Services Purchasing Managers' Index (PMI), which fell from 68.9 in August to 58.7. This marks the second month in a row of decreasing numbers, indicating that while growth in the service sector persists, the pace has slowed. Business activity maintained an upward trajectory, particularly driven by robust performances in wholesale, retail, and financial services, spurred by an increase in lending activities. The expansion of new business ventures continued, with a slight reduction from 66.8 to 65.2, predominantly in wholesale, retail, and financial sectors. Employment figures showed growth, although at a reduced rate (from 57.0 to 53.1), reflecting ongoing recruitment efforts. Meanwhile, the backlog of work diminished slightly, from 49.4 to 47.8. Looking ahead, the outlook for business activity over the next three months remains optimistic, rising from 79.3 to 81.1, driven by favorable macroeconomic conditions, a boost in tourist arrivals, and expected benefits from the forthcoming festive season.