Sri Lanka’s services sector activities saw expansion in December 2025, as indicated by the Purchasing Managers Index compiled by the Central Bank, which recorded an index value of 67.9. This growth in business activities occurred despite disruptions caused by Cyclone Ditwah earlier in the month.

The Central Bank noted that the primary driver of this expansion was the wholesale and retail trade, fueled by festive season demand. Additionally, positive contributions came from business activities related to other personal service activities, as well as accommodation, food, and beverage services.

There was also an increase in new businesses in December, with the index rising to 64.6 from 53.6 in November. This growth was supported by improved activity in wholesale and retail trade, coupled with strengthened financial services activities.

Employment saw an uptick in December as companies expanded their workforces to meet year-end operational requirements. The Central Bank also reported that backlogs of work increased for the second consecutive month.

(Colombo/Jan17/2026)