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Sri Lanka’s Services PMI eased to 50.5 in November 2025 from 66.0 in the previous month, marking a lowest reading since April 2023, signaling service sector activity continued to expand but at a markedly slower pace. The expansion was primarily supported by accommodation, food, and beverage services, although adverse weather conditions toward the end of the month weighed on overall activity. New businesses increased (53.6 vs 61.5 in October), underpinned by stronger demand for financial services and improved activity in wholesale and retail trade. Employment (55.7 vs 52.5) continued to expand, as firms added staff to meet seasonal operational needs. Backlogs of work (51.1 vs 47.8) reversed a three-month decline. Looking ahead, the expectations for activities over the next quarter (63.3 vs 84.2) continued to improve, albeit at a slower pace, with some respondents noting potential disruptions to consumer demand due to adverse weather conditions.