Construction sector surges to second highest PMI in January

Saturday, 28 February 2026 01:24 - - {{hitsCtrl.values.hits}}

Sri Lanka’s construction activity accelerated sharply at the start of 2026, with the Purchasing Managers’ Index (PMI – Construction) hitting 75 in January, marking the sector’s second-highest performance ever and signaling robust growth momentum.

In July 2020, the index recorded 75.7.

Index compiler the Central Bank of Sri Lanka (CBSL) said most firms reported increased project activity during the month, driven by the commencement of new projects in the New Year and the easing of weather-related disruptions experienced in December.

The New Orders Index rose to 77.8 in January, driven by increased project availability across most construction segments. Meanwhile, the Employment Index also expanded 54.2 compared to the 50 in the previous month, reflecting higher hiring levels.

However, many firms emphasised the persistent difficulties faced in recruiting employees to various skilled occupational categories.

The Quantity of Purchases Index increased to 65.3 in January, as firms continued to build up inventories for scheduled projects.

Meanwhile, the Suppliers’ Delivery Time Index remained lengthened during the month.

Construction activities are expected to remain upbeat in the next three months, underpinned by expected project commencements.