Construction PMI rises further in Dec. as project pipeline expands

Saturday, 31 January 2026 02:39 - - {{hitsCtrl.values.hits}}

Sri Lanka’s construction sector recorded a further expansion in December 2025, with the Purchasing Managers’ Index for Construction (PMI – Construction) rising to 67.1 from 66.2 in November, according to the Central Bank of Sri Lanka (CBSL).

The CBSL said a majority of firms reported a notable increase in construction activity during the month, despite initial operational disruptions caused by adverse weather conditions.

The New Orders Index also strengthened, increasing to 67.6 in December from 64.7 in November, reflecting a higher rate of expansion. Survey respondents attributed this to an increase in both Government-funded infrastructure projects and new private-sector developments.

The construction sector employment Index eased to a neutral level of 50 from 57.4 in November, indicating stable employment conditions during the month. The Quantity of Purchases Index remained in expansionary territory at 54.2, although at a slower pace compared to November’s 58.8.

Suppliers’ Delivery Time continued to lengthen in December, with the index rising to 56.9 from 53.0 in the previous month, pointing to ongoing supply-side delays.

Looking ahead, the CBSL said the outlook for construction activity over the next quarter remains positive. This optimism is supported by the scheduled commencement of several new projects, favourable weather forecasts in 2026, and ongoing post-cyclone reconstruction efforts, which are expected to provide additional momentum to the sector.