FINANCIAL CHRONICLE – Sri Lanka’s services sector activities expanded at a slower rate in February 2026, with a Purchasing Managers Index compiled by the central bank registering an index value of 54.4, compared to 64.5 the previous month.

The expansion in business activities was underpinned by ‘broadbased improvements’ across most of the sectors, CBSL said.

“This growth was primarily driven by robust performance in professional services and other personal service activities.”

The accommodation, food and beverage, and education sectors continued to demonstrate sustained 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 rose in February 2026, as firms expanded workforce to meet rising consumer demand, CBSL said.

Backlogs of Work continued to diminish during the month.

However, “Some firms highlighted potential downside risks, including conflicts in the Middle East and broader uncertainties in global economic conditions.” (Colombo/Mar17/2026)