MONETABRIEF – Sri Lanka's services had expanded in September with a Purchasing Managers' Index for services recording 60, above the 50, though slowing from a previous month, the central bank which compiles it said.
"Business Activity increased in September 2026, reflecting improvements across several sub-sectors, led by financial services, with notable contributions from education and professional services," the statement said.
"New Businesses increased in September 2026, primarily driven by the expansion in the financial services, with positive contributions from the insurance, education, professional, and other personal services sub-sectors."
Employment had increased in September 2026 as firms expanded. Backlogs of Work declined, although at a slower rate compared to the previous month.
Tourism, upcoming festive season and 'favourable macro-economic conditions had improved expectations, the central bank said.
The tourism sector can feel higher profits initially as the rupee falls, inflating revenues and real wages of workers fall.
However as local prices go up, it will feed voter unhappiness and higher budgetary outlays for subsidies. (Colombo/Oct18/2026)