*Services Sector Expansion Slows Further in May 2025 Amid Mixed Sectoral Performance* Sri Lanka’s Services PMI recorded a value of 57.0 in May 2025, reflecting a continued but slower pace of expansion in services activities, in line with seasonal trends observed in the same period last year. Business activity growth was supported by sustained improvements in financial services, driven by increased lending, while professional services and wholesale and retail trade also recorded notable gains. However, the accommodation, food, and beverage sector experienced a contraction during the month, attributed to a decline in tourist arrivals on a month-on-month basis. New Business volumes increased, primarily led by growth in financial services. In contrast, Employment levels declined due to retirements and resignations reported across several companies. Backlogs of Work continued to ease during the month. Looking ahead, expectations for business activity over the next three months remained positive,supported by favorable macroeconomic conditions.