FINANCIAL CHRONICLE – In April 2026, Sri Lanka’s services sector experienced a contraction, attributed to seasonal fluctuations following the recent festive period and rising energy costs. This is reflected in the Purchasing Managers Index (PMI) released by the central bank, which recorded a value of 46.7, a notable decline from the previous month’s reading of 59.4.

The Central Bank of Sri Lanka (CBSL) reported a decrease in new business registrations for the first time since April 2023. This decline was particularly evident in sectors such as goods transportation, insurance, wholesale and retail trade, as well as accommodation and food services.

“Most sectors witnessed a reduction in business activities during the month, primarily due to increasing fuel prices, the holiday season, and a decrease in tourist arrivals,” CBSL noted.

The sub-sectors related to goods transportation and personal services experienced the most significant contractions, while other areas like insurance, retail and wholesale, as well as accommodation and food services, also faced considerable downturns, according to CBSL.

Additionally, employment levels fell as a result of contract completions, retirements, and voluntary resignations. There was also a continued decline in work backlogs.

(Colombo/May 18/2026)