Sri Lanka’s construction activity gathered further momentum in June 2026, with the Purchasing Managers’ Index (PMI) Total Activity Index rising to 60.0 from 59.1 in May.
According to the Central Bank of Sri Lanka, this continued expansion was primarily driven by the ongoing execution of projects awarded in preceding months.
The industry’s growth came despite mounting operational bottlenecks, particularly acute shortages of skilled labour and key raw materials such as bitumen. To meet project timelines, construction firms accelerated hiring, pushing the Employment Index up to 61.4 from 56.1 in May. Similarly, the Quantity of Purchases Index increased to 60.0, up from 59.1 in the previous month, as contractors built up inventory for ongoing work.
Demand conditions remained positive but cooled slightly following May’s high volume of contract awards, with the New Orders Index expanding at a slower pace of 54.3 compared to 63.6 in May.
Supply chain pressures also showed slight easing while remaining elevated. The Suppliers’ Delivery Time Index stood at 62.9, indicating continued delivery delays, albeit at a slower rate than May’s 71.2.
Looking ahead, business sentiment within the sector remains optimistic for the coming quarter, supported by a solid pipeline of work. Sri Lanka’s sustained expansion in construction offers a strong contrast to global trends, where major economies across the Eurozone, UK, and Europe continue to report contracting sectoral activity.
