Sri Lanka’s Services PMI Moderates in August

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Sri Lanka’s Services PMI fell to 68.9 in August 2025 from 70.1 in July, signaling slower but continued expansion in the sector. Business activity expanded across key sectors, driven by strong performances in wholesale and retail trade, personal services, accommodation, food and beverage services, and financial services. New businesses (66.8 vs 64.9 in July) increased, led by wholesale, retail, and financial services. Employment (57.0 vs 59.8) continued to rise amid ongoing recruitment, while backlogs of work (49.4 vs 51.1) edged lower. Expectations for business activity over the next three months (79.3 vs 80.7) remained positive, supported by favorable macroeconomic conditions and high tourist arrivals.

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