Here is the point that carries more weight than the headline PMI figures released by the Central Bank of Sri Lanka. While much of April’s contraction in manufacturing (42.6) and services (46.7) was dismissed as seasonal — the Sinhala and Tamil New Year holidays, fewer working days, fading festive demand — the rupture in new business flows tells a different, more troubling tale.

April 2026 marked the first month since April 2023 that services sector new business contracted. Not a slowdown. Not a plateau. An outright decline. Nor was it narrow in scope. The deterioration cut across transportation of goods, insurance, wholesale and retail trade, and accommodation, food and beverage service activities.

The Island Financial Review asked an independent analyst for his take. Here is what he said.

“These are not fringe sub-sectors; they are the arteries of Sri Lanka’s domestic economy. Why does this matter beyond the seasonal logic? Because new business is a leading indicator. What falls today in new orders will show up tomorrow in production, employment and stock purchases. April’s drop in new business — the first in three full years — suggests that May’s anticipated recovery may be shallower than hoped, and that a return above the neutral 50 PMI threshold before June is unlikely unless geopolitical tensions ease sharply.”

“Compounding the concern, the decline in new business was not an isolated Sri Lankan phenomenon. It arrived alongside two external shocks: rising energy prices, which hammered transport and personal services, and the ongoing Middle East conflict, which lengthened supplier delivery times and added logistical friction.”

“To be sure, expectations over the next three months remain positive. Firms hope for a stabilisation following the end of the war. But the first decline in new business in three years is a quiet alarm. Seasonal patterns explain April’s production dip. They do not explain why customers stopped placing new orders. For Sri Lanka’s policymakers and business leaders, that is the story to watch in May,” he said.

By Sanath Nanayakkare

The Public Relations Association of Sri Lanka (PRASL), together with the Sri Lanka Press Institute (SLPI), has launched a comprehensive new ‘Certificate Course in Public Relations & Corporate Communications’ aimed at developing the next generation of PR and communications talent in Sri Lanka.

Designed for school leavers, career explorers and aspiring communicators, the programme offers an introduction to the fast-evolving world of public relations, corporate communications, digital communications, stakeholder engagement and crisis management.

Moving beyond a traditional academic approach, the course has been developed around practical industry exposure, real-world case studies and hands-on learning led by experienced practitioners actively working within the communications industry.

A key highlight of the programme is its industry-led faculty model, bringing together 16 professionals from Sri Lanka’s corporate and agency sectors to deliver specialised sessions across the 12-week course.

Conducted in English in line with industry expectations, the programme will commence on 23rd June 2026 at the Sri Lanka Press Institute in Colombo 5, with twice-weekly evening sessions.

Registrations are now open, for the inaugural intake, with limited placements available. For more information visit the Public Relations Association of Sri Lanka Facebook page or the website www,prasl.lk and complete the Google Form there to enroll. You may also write to prasl.education@gmail.com or enquire from Dev WhatsApp +94779356995.

Sri Lanka’s national ICT solutions provider, SLT-MOBITEL, reported a robust first quarter for 2026, with consolidated revenue climbing 10.6% year-on-year to LKR 30.8 billion, driven by sustained demand for internet services.

Group operating profit surged 39.1% to LKR 5.1 billion, while profit before tax jumped 55.4% to LKR 4.2 billion. Net profit rose 53.3% to LKR 3.1 billion, signaling a decisive turnaround despite higher electricity tariffs and currency pressures.

At the parent level, SLT PLC revenue increased 10.6% to LKR 19.7 billion, with net profit up 53.3% to LKR 2.1 billion. Subsidiary Mobitel posted a 9.9% revenue rise, driven by a 28% jump in broadband revenue, while its net profit soared 63.7%.

Chairman Dr. Mothilal de Silva said the results demonstrate the Group’s resilience and strategic success. CEO Riyaaz Rasheed added that SLT-MOBITEL is well-positioned to drive AI and 5G innovation, supported by positive subscriber momentum and cost discipline.