Sri Lanka services expand in May 2026 as business activity rebounds: PMI
EconomyNext: Sri Lanka’s services sector expanded in May 2026 as business activity rebounded, according to a Purchasing Managers Index compiled by the Central Bank of Sri Lanka (CBSL) which registered an index value of 56.9, compared to 46.7 the previous month.
“The expansion was primarily driven by the financial, professional, and other personal services sub-sectors, while real estate, IT programming, and goods transportation also recorded notable growth,” CBSL said.
New businesses increased in May 2026, driven by growth in financial and professional services sectors.
“The wholesale and retail trade, other personal services, and goods transportation sectors also contributed to this increase.”
Employment declined further due to contract expirations, retirements and resignations.
Backlogs of work also continued to decline at a faster rate than in the previous month.
OSL take:
Sri Lanka’s services sector continues to demonstrate strong growth momentum, reflecting Sri Lanka’s broader economic recovery and its ambition to become a leading business and services hub in South Asia. According to CBSL’s latest PMI, services sector activity expanded significantly in May 2026, driven by growth in financial services, professional services, personal services, information technology, real estate, and transportation. The sustained expansion highlights a growing range of business/investment opportunities for foreign businesses/investors seeking access to emerging markets in the region. As Sri Lanka strengthens its position as a regional hub for trade, logistics, finance, technology, and business services, international companies can benefit from a strategic location along key Indian Ocean shipping routes, a skilled workforce, and improving digital and physical infrastructure. Business/investment opportunities are particularly evident in financial services, fintech, IT and business process outsourcing, logistics and transportation, real estate development, and professional services. The Sri Lankan government’s ongoing reform agenda and focus on attracting foreign investment are further enhancing the business environment, creating new avenues for partnerships, innovation, and long-term growth. With the services sector playing an increasingly important role in economic expansion, Sri Lanka is emerging as an attractive destination for foreign businesses/investors looking to establish a presence in one of South Asia’s most strategically positioned economies.
| Article Code : | VBS/AT/20260702Z_2 |