FINANCIAL CHRONICLE – The construction industry in Sri Lanka showed continued growth in March 2026, with the Purchasing Managers Index (PMI) reaching a value of 57.1. This marks a significant decline from the previous month’s figure of 70.3, as reported by the central bank.
The central bank indicated that numerous participants in the sector are facing a tough operational landscape. This is largely attributed to the scarcity of fuel and raw materials, escalating costs, and logistical challenges linked to the ongoing conflict in the Middle East.
Despite these hurdles, the New Orders Index saw an increase in March, climbing to 67.2 from 70.3 in February, with many respondents noting that the flow of projects remained strong.
Additionally, both the Employment Index and the Quantity of Purchases Index rose in March, suggesting that companies are persisting with their hiring and purchasing plans amid the current uncertainties, according to the Central Bank of Sri Lanka (CBSL).
Respondents also mentioned that, in anticipation of further price hikes, many businesses aimed to increase their inventory levels, while suppliers appeared to be withholding materials.
The Quantity of Purchases Index experienced a surge, reaching 71.4 compared to 56.9 the previous month, driven by heightened construction activities.
Furthermore, suppliers’ delivery times have notably increased, indicating delays related to transportation issues. (Colombo/May6/2026)
