17.04.202602:43:37UTC+00Sri Lanka Services PMI Rises in March

Sri Lanka’s Services PMI increased to 59.4 in March 2026 from 54.4 in February, indicating a further strengthening in activity. Growth was broad-based, led by financial services amid higher lending, while wholesale and retail trade benefited from festive-season demand. Professional and other personal services also recorded solid gains.

New business expanded further, with the related index rising to 57.6 from 53.8 in February, driven mainly by financial services and supported by robust growth in insurance and pension funding. Employment eased slightly, with the index edging down to 54.2 from 55.1, though firms continued to hire to meet stronger consumer demand ahead of the festive period. The pace of decline in backlogs of work moderated, as reflected in a rise in the index to 48.1 from 47.6.

Looking ahead, expectations for business activity over the next quarter remained positive but grew at a slower pace, with the index softening to 57.1 from 65.9. Sentiment was underpinned by seasonal demand and emerging business opportunities, although some firms highlighted downside risks stemming from the conflict in the Middle East and broader global economic uncertainty.