Sri Lanka’s services sector experienced a notable slowdown in expansion during November 2025, according to the latest Purchasing Managers Index (PMI) released by the Central Bank. The index recorded a value of 50.5 in November, a significant decline from 66.0 in October.
The Central Bank highlighted that the accommodation, food, and beverage services sectors were the primary contributors to this expansion. Additionally, financial services continued to show strength, supported by increased lending activities, which also contributed to the overall performance of the services sector.
Growth in new businesses moderated during the month, with the index falling to 53.6 in November from 61.5 in October. However, employment in the sector saw an uptick, registering 55.7 compared to 52.5 in the previous month, as firms increased hiring to address seasonal operational requirements.
The report also noted an increase in backlogs of work, reversing a three-month trend of continuous decline. Some respondents expressed concerns over disruptions to consumer demand, citing adverse weather conditions as a key factor. The Central Bank concluded that while the sector continues to strengthen, the pace of expansion has moderated.
(Colombo, December 16, 2025)
