Sri Lanka’s construction activity expands further in February

Sri Lanka’s construction sector expanded in February with many contractors reporting a continuous increase in construction work during the month. But they also emphasised the need for more large-scale projects to sustain the growth.

As a result, the Central Bank’s Sri Lanka Purchasing Managers’ Index for Construction (PMI - Construction), as reflected by the Total Activity Index, expanded further to 55.6 in February 2025.

“As reported by the respondents, the new orders index increased in February with the increase in awarding of projects, particularly for rehabilitating roads and irrigation systems. Further, in line with the improved activity level, the Quantity of Purchases and Suppliers’ Delivery Time indices remained expanded during the month. However, the Employment index further contracted, reflecting the current conservative hiring practices of the construction firms,” the banking regulator said in a statement adding: “The outlook for construction activities for the next three months remains positive. Furthermore, most of the firms anticipate an increase in government involvement in the construction industry for the remainder of the year.”