Sri Lanka services expand at slower rate in April due to tariffs: PMI
- CNL Reporter
- May 20, 2025
- Business News
- PMI
- 0 Comments
Sri Lanka’s services sector expanded in April 2025, but at a slower rate than March because of tariff uncertainties, according to a Purchasing Managers Index compiled by the central bank.
Its Purchasing Managers’ Index for Services recorded a value of 60.6 in April 2025, compared to 69.8 in March.
“Business activities in general were impacted by the extended holidays during the month, while freight forwarding companies, in particular, were affected by the uncertainties that prevailed surrounding the import tariffs imposed by the US.”
Wholesale and retail trade business activities expansion was driven by festive demand, the central bank said.
Business activities in financial services rose due to increased lending activities.
Employment increased due to new recruitments made by several companies.
Backlogs of work declined in April 2025, registering 47.5, from March’s 48.4.
“Expectations for Business Activities for the next three months continued to improve at a higher rate amidst the temporary suspension of import tariffs by the US.”
