FINANCIAL CHRONICLE – In March 2026, Sri Lanka witnessed growth in its services sector, primarily fueled by the financial services industry. The central bank’s Purchasing Managers Index (PMI) recorded a value of 59.4, an increase from 54.4 in the previous month.
The financial services sector was the main contributor to this expansion, benefiting from a rise in lending activities, according to the Central Bank of Sri Lanka (CBSL). The report noted, “The growth of new businesses persisted in March 2026, particularly within the financial services sector, which was further bolstered by significant advancements in insurance and pension funding operations.”
Overall, the growth in business activities was supported by widespread improvements across various sectors. The wholesale and retail trade sectors saw an uptick due to increased demand related to festive occasions. Additionally, professional and personal service sectors also reported positive growth.
In February 2026, new business ventures continued to thrive, driven by heightened demand for accommodation, food, and beverage services, along with an increase in other personal service activities. The CBSL indicated that employment levels rose as businesses expanded their workforce to accommodate the growing consumer demand leading up to the festive season.
While backlogs of work were reported to be decreasing, the rate of this decline slowed during the month. Some businesses expressed concerns about potential risks to future growth, citing the ongoing conflict in the Middle East and broader uncertainties in the global economy. (Colombo/Mar17/2026)
