Sri Lanka’s construction sector is showing signs of renewed momentum, as previously stalled projects regain steam and fresh contracts emerge. But amid this rally, the oft-quoted estimate that around 10,000 buildings remain under construction has not been substantiated by reliable public data.
Recent activity indicators suggest the industry is gaining traction. The Purchasing Managers’ Index (PMI) for August reached 61.1, slightly higher than July’s 60.0, signaling continued expansion and marking the strongest reading in over a year.
Rising employment, increased material purchases, and extended delivery times are cited by the PMI survey as evidence of growing site activity and material demand.
But scratching beneath the surface, official sources do not confirm a nationwide tally of 10,000 buildings under construction. The Construction Industry Development Authority (CIDA) maintains a “Bulletin of Construction Statistics,” but the publicly available versions focus largely on cost indices, inputs, and pricing trendsnot counts of active projects.
A January 2025 bulletin, for example, breaks down material, labor, and equipment indices but does not offer an update on the number of active sites.
The only comprehensive construction survey available is from 2019/20, conducted by the Department of Census and Statistics. That study estimated the total value of work done across all construction sectors but did not enumerate active project counts.
While useful for assessing output and contribution to GDP, such historical data aren’t suited to verifying a current project backlog.
Given this absence of official validation, the 10,000-building figure may be a rough estimate, a regional construct (e.g. focused on Colombo or urban zones), or a conflation of permitted, uncompleted, or even planned structures. Without a verified number, narratives of a construction “backlog” rest on uncertain ground.
That ambiguity notwithstanding, the sector’s revival is evident in other metrics. Private building work is regaining momentum, buoyed by record-low interest rates and a softening in construction material prices for example, the consumer price index for September showed easing costs for key inputs.
Government-driven infrastructure work is also reactivating, though public spending has lagged allocations: of the Rs. 1.3 trillion earmarked for public investment in 2025, less than 25 percent has reportedly been disbursed.
Still, resumption of suspended projects is bolstering confidence. Roadworks and water projects are now more commonly cited among newly advancing initiatives. Firms are reportedly expanding their workforce to meet rising project demands, and the volume of procurement is rising in expectations of sustained growth.
Yet risks linger. If government agencies continue to underperform on releasing funds or executing contracts, much of the pressure will fall onto the private side. Supply chain bottlenecks are also evident: deliveries of raw materials are slowing as demand swells across sites. Any disruption in imports or logistics could choke off the momentum rapidly.
In the end, what’s clear is that Sri Lanka’s construction sector is emerging from a low-activity period. The PMI data and anecdotal revivals hint at meaningful recovery. But the actual scale of active construction remains opaque. Until industry authorities or statistical agencies publish a definitive count of live projects especially buildings the narrative of a 10,000-structure backlog remains speculative rather than certified
