FINANCIAL CHRONICLE – The construction industry in Sri Lanka experienced a deceleration in growth during August 2026, primarily due to a continued shortage of bitumen. The central bank’s Purchasing Managers Index (PMI) indicated a value of 59.4 for August, down from 61.4 in July.
The central bank noted that numerous respondents to the survey pointed out the ongoing bitumen scarcity, which has hindered progress in road construction and limited the overall expansion of the construction sector.
In contrast, the New Orders Index saw an increase, climbing to 62.5 in August from 57.1 in July, largely propelled by government-funded initiatives, according to the central bank’s report.
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Meanwhile, the Quantity of Purchases Index rose at a reduced pace, recording a value of 59.4 compared to July’s 64.7. The Employment Index also showed a decline, falling to 59.7 from 61.8 in the previous month, with many companies reporting ongoing shortages of skilled labor.
Survey participants consistently emphasized the persistent issues of skilled labor and raw material shortages as significant barriers to the growth of the sector.
The Suppliers’ Delivery Time Index remained elevated in August, reflecting the high workloads faced by suppliers, with a recorded value of 59.4, down slightly from 60.0 in July. The central bank indicated that the bitumen shortages and variations in material costs continue to create obstacles for the industry. (Colombo/Oct1/2026)
