Construction sector growth slows in April

Monday, 1 June 2026 00:03 - - {{hitsCtrl.values.hits}}

The Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction), as reflected by the Total Activity Index, declined to 45.7 in April 2026, compared to a value of 57.1 in March, mainly due to the seasonal slowdown associated with the Sinhala and Tamil New Year period.

Its compiler, the Central Bank of Sri Lanka (CBSL) said many survey respondents cited input shortages, particularly of petrochemical-based raw materials, and rising costs stemming from the conflict in the Middle East as challenges to the timely execution of planned work.

Most firms reported continued availability of projects in April, particularly road rehabilitation activities, which underpinned the expansion in the New Orders Index to 62.9, albeit at a slower rate compared to 67.2 in March.

However, the CBSL said several respondents indicated that some new projects could face delays as rising raw material costs may require price renegotiations.

The Employment Index continued to expand, reflecting ongoing staff recruitment by firms in response to steady project availability.

The CBSL said many firms also highlighted shortages across most skilled labour categories.

The Quantity of Purchases Index declined in April to 42.6 from 55.7 in March, mainly due to lower levels of construction activity.

Meanwhile, the Suppliers’ Delivery Time to lengthen during the month, but at the same rate of 71.4.

The CBSL noted that the business sentiment among construction firms remained positive over the next three months, driven by the steady flow of projects, though concerns over geopolitical developments persist.