March 31, Colombo (LNW): Sri Lanka’s construction industry maintained its upward trajectory in February, with most businesses reporting an increase in activity, according to the Central Bank.
The sector’s Purchasing Managers’ Index (PMI), a key indicator of construction performance, rose to 55.6 in February 2025, reflecting further expansion from January’s reading of 52.9.
A PMI value above 50 signals growth in the sector, and February’s figures indicate that construction activity has been on a steady rise.
However, while the industry continues to expand, many firms stressed the importance of launching larger-scale infrastructure projects to sustain long-term momentum.
The increase in new orders during February was primarily driven by government contracts for the rehabilitation of roads and irrigation networks.
Additionally, indices measuring the quantity of materials purchased and the efficiency of supplier deliveries showed further improvements, suggesting an overall boost in construction-related operations.
Despite this growth, employment levels in the sector continued to contract, with companies remaining cautious about hiring amid economic uncertainties.
Industry experts believe that stronger government participation in construction projects could help stabilise employment rates in the sector.
Looking ahead, construction firms remain optimistic about the coming months, anticipating continued government investment and policy support to sustain growth and drive the industry forward.
