Tuesday Sep 01, 2026
Tuesday Sep 01, 2026
Tuesday, 1 September 2026 03:20 - - {{hitsCtrl.values.hits}}
Sri Lanka’s construction sector expanded at a faster pace for the third consecutive month in July, with the Purchasing Managers’ Index for Construction (PMI – Construction) rising to 61.4 from 60 in June and 59.1 in May, the Central Bank of Sri Lanka (CBSL) said.
The July reading, based on the Total Activity Index, reflected a sustained flow of construction work despite constraints on the availability of inputs, particularly bitumen, CBSL said.
In June, the CBSL had attributed the expansion largely to the execution of projects awarded in preceding months. The latest survey showed the flow of new work continuing into July, with the New Orders Index expanding further on a steady inflow of projects.
Employment also strengthened in July, extending the improvement seen in June, when the Employment Index rose to 61.4 from 56.1 in May. However, construction firms continued to report shortages of skilled workers.
The Quantity of Purchases Index increased further in July as construction work expanded. It had risen to 60 in June from 59.1 in May. Despite the increase in purchases, respondents continued to report shortages of construction materials and elevated prices, while the Suppliers’ Delivery Time Index remained high.
The supply of bitumen remained a particular constraint for a second consecutive month, having also been cited by firms in June as limiting the pace of construction activity.
The outlook for the next three months remained positive, supported by expectations of upcoming project awards. However, firms continued to flag the ability to maintain a steady flow of inputs as a risk to activity.
Sri Lanka’s expansion contrasted with conditions across several European construction markets as of end-August. S&P Global data showed activity contracting in the Eurozone, France, Germany, Italy and the UK, while Ireland moved from contraction to expansion.
