The Purchasing Managers’ Index (PMI) for Construction in Sri Lanka, represented by the Total Activity Index, registered a value of 57.1 for March 2026. This figure signifies a continued growth in construction activities, although the rate of expansion has slowed down compared to the previous month. Many industry participants indicated that they are facing a difficult operating landscape, primarily due to shortages of fuel and raw materials, increasing costs, and logistical challenges linked to the ongoing conflict in the Middle East.
The New Orders Index showed ongoing growth throughout the month, with a majority of participants noting that project inflows remained strong. Both the Employment Index and the Quantity of Purchases Index experienced further increases in March, suggesting that companies are proceeding with their hiring and purchasing plans despite the existing uncertainties. Numerous respondents mentioned that, in anticipation of rising prices, many firms are looking to increase their inventory levels, while suppliers have been more cautious in releasing materials. Additionally, the time taken for suppliers to deliver goods significantly increased during the month, largely due to delays related to transportation.
Looking ahead, expectations for construction activities in the upcoming quarter are still above the neutral mark, bolstered by a consistent flow of projects. However, these expectations are somewhat dampened by the uncertainties associated with the ongoing conflict in the Middle East.
Source: Financial Chronicle Biz English | Sri Lanka Business News.
