The Purchasing Managers’ Index (PMI) for Construction in Sri Lanka, represented by the Total Activity Index, fell to 45.7 in April 2026. This decrease is largely attributed to the seasonal slowdown during the Sinhala and Tamil New Year celebrations. Additionally, numerous respondents in the survey pointed to shortages of inputs, especially petrochemical-based materials, along with rising costs linked to the ongoing conflict in the Middle East, which have hindered the timely completion of scheduled projects.
Despite the challenges, many companies reported a steady availability of projects in April, notably in road rehabilitation, which supported an increase in the New Orders Index. However, some respondents expressed concerns that new projects might experience delays due to escalating raw material prices, potentially necessitating price renegotiations. The Employment Index showed continued growth, indicating that firms are actively hiring in response to the consistent flow of projects. Nevertheless, many companies reported difficulties in finding skilled labor across various categories. The Quantity of Purchases Index saw a decline in April, primarily reflecting a reduction in construction activity. Additionally, the Suppliers’ Delivery Time continued to extend during the month.
Overall, the outlook among construction firms remains optimistic for the upcoming three months, bolstered by a steady influx of projects, although apprehensions about geopolitical issues linger.
