The services sector PMI in Sri Lanka rose to 54.7 in December of 2018 from 52.6 in November which was the lowest reading since the series began in May of 2015. Faster increases were seen in new business (55.4 from 53.4) and business activity (64.5 from 57.4) as wholesale & retail trade and accommodation, food & beverage sub sectors posted a strong growth due to the festive season and peak season for tourism. Transportation of goods also went up with increased transshipment volumes while other personal services such as leisure activities also improved with the holiday season. Growth in new businesses were observed across financial services, insurance and professional services due to favourable demand conditions. Expectations for activity also increased (62.4 from 55.1) while employment declined (44.1 from 52.3) due to delays in filling open positions. Services Pmi in Sri Lanka averaged 58.25 from 2015 until 2018, reaching an all time high of 66.80 in May of 2015 and a record low of 52.60 in November of 2018.
Services Pmi in Sri Lanka is expected to be 56.80 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 57.10 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.