Sri Lanka’s services sector recorded faster expansion in August 2026 while manufacturing continued to expand at a slower pace, according to Purchasing Managers’ Index data released by the Central Bank of Sri Lanka.
The Services PMI increased to 65.6 in August from 61.4 in July, indicating stronger month-on-month expansion in business activity among surveyed service-sector firms.
The Central Bank data showed that transportation, wholesale and retail trade, and professional services were among the activities contributing to the stronger services reading.
Meanwhile, the Manufacturing PMI declined to 53.0 in August from 55.0 in July.
A PMI reading above 50 generally indicates expansion compared with the previous month, while a reading below 50 indicates contraction.
Therefore, the manufacturing reading of 53.0 still indicates overall expansion, but at a slower pace than in July.
Within manufacturing, however, the Production sub-index fell below the neutral threshold to 48.4, with moderation in textiles and wearing apparel contributing to the weaker production reading.
New Orders were at the neutral level of 50.0, while employment and purchasing activity increased during the month.
The divergence between the two headline PMIs provides a higher-frequency view of economic activity alongside broader indicators such as quarterly GDP.
Importantly, a Services PMI reading of 65.6 does not mean that Sri Lanka’s services output increased by 65.6%. PMI is a diffusion index based on business survey responses and measures the direction and breadth of month-to-month change rather than a percentage growth rate in total output.