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Sri Lanka services expansion in Mar 2026 driven by financial activity: PMI

Sri Lanka’s services sector activities expanded in March 2026 driven by financial services, with a Purchasing Managers Index compiled by the central bank registering an index value of 59.4, compared to 54.4 the previous month.

The financial services sector remained the primary driver, benefiting from increased lending activity, CBSL said.

“The expansion of new businesses continued in March 2026, driven by the financial service sector, with further support from significant growth in insurance and pension funding activities.”

The expansion in business activities was “supported by broad-based improvements across sectors”.

Wholesale and retail trade expanded due to festive demand.

Professional services and other personal service activities also recorded growth.

“New Businesses continued to expand in February 2026, supported by increased demand for accommodation, food and beverage services, alongside a notable uptick in other personal service activities.”

Employment increased as firms expanded workforce to meet rising consumer demand ahead of the festive season, CBSL said.

Backlogs of work continued to decline, though the pace of contraction moderated during the month.

“Some firms highlighted downside risks to outlook, including the impact of the Middle East conflict and broader global economic uncertainty.”

source: Economy Next