The services sector PMI in Sri Lanka rose to 55.5 in October 2018 from 53 in the previous month. There was a strong expansion in business activities (57.1 from 51 in September), mainly in transportation, warehousing and financial services; and new business (58.2 from 55.2), particularly for financial and professional services. This in turn, led to a faster rate of job creation (55.4 from 54.2), while backlogs of work went down (43.1 from 45). Moreover, the optimism on the three-month business outlook strengthened at a faster pace (63.6 from 59.6), due to the upcoming festival season and tourism’ peak season, while concerns went up over the political situation and depreciation of the Sri Lankan rupee. Also, on the price front, output cost inflation accelerated. Services Pmi in Sri Lanka averaged 58.47 from 2015 until 2018, reaching an all time high of 66.80 in May of 2015 and a record low of 53 in September of 2018.
Services Pmi in Sri Lanka is expected to be 57.90 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Services Pmi in Sri Lanka to stand at 56.50 in 12 months time. In the long-term, the Sri Lanka Services PMI is projected to trend around 56.90 in 2020, according to our econometric models.