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

Opposition lawmakers are intensifying calls for the public release of the forensic audit into Sri Lanka’s controversial e-visa contracts, even as a new “special audit” is poised to reach the Parliamentary Committee on Public Finance (COPF) within days.

Their renewed demand came in the wake of a Supreme Court judgment on Tuesday, which sentenced former Controller General of Immigration and Emigration Harsha Ilukpitiya to two years’ imprisonment for contempt of court. The court found he had failed to comply with an earlier order to reinstate the old visa system pending final adjudication of petitions challenging the new e-visa scheme.

Despite more than 15 months having passed since the petitions were filed, opposition critics assert the government has yet to submit the forensic audit to the Supreme Court as required.

The lawsuits were lodged by Opposition politicians Patali Champika Ranawaka, M.A. Sumanthiran, and Rauff Hakeem, all of whom served on the COPF at the time the e-visa deal was scrutinised. Ranawaka has emphasised that while the contempt case was concluded on September 23, 2025, the substantive challenge to the e-visa system is still pending. The next hearing is slated for November 23.

At the heart of the dispute lies the stalled forensic audit, the principal recommendation of a 660-page COPF report  which Parliament approved in July of last year, authorising the Auditor General to carry out a full review of the procurement process.

The petitioners themselves have presented preliminary loss calculations to the court. They estimate that Sri Lanka lost Rs 3.71 billion between the introduction of the new system (April 17, 2024) and the issuance of an interim court order, owing to the shift from a US$1 visa-processing charge to one exceeding US$25.

An additional Rs 4 billion, they claim, was lost because the interim order was not enforced and the old system was not reinstated. Support for these figures comes from data showing that the contracted firms (GBS, IVS, and VFS) earned over US$12.6 million (around Rs 3.78 billion) between April and August 2024.

Ranawaka insists that only a forensic audit by the Auditor General can establish an official, court-accepted figure for losses. Without it, he argues, their estimates carry only persuasive weight. “If the audit officially confirms fraud and quantifies the loss, any citizen may file complaints with the police or the Bribery Commission,” he said. He has further alleged that the audit report is being deliberately withheld to obstruct criminal proceedings.

In recent days, however, the government has moved to deflect mounting pressure by announcing a “special audit”distinct from a full forensic auditas the Auditor General reportedly declined to conduct full forensic work. According to Minister of Public Security Ananda Wijepala, this special audit has already been sent to the Immigration Department for review and is expected to be forwarded to the COPF within a week.

With mounting public scrutiny and political pressure, the COPF is expected to notify Parliament of next steps once it receives the audit report.

Meanwhile, in parliament, MP Rauff Hakeem has also called for the forensic report’s formal submission to parliament, pointing to a COPF directive for the Auditor General’s involvement. Hakeem has accused the government of failing to await the forensic audit and said losses could amount to as much as US$3.4 billion.

In sum, opposition parties now face a pivotal moment. They must decide whether to accept the special audit as a compromise or to press ahead in court for the original forensic audit, pushing to unmask the full extent of alleged malfeasance in Sri Lanka’s visa contract process.

Three entities filed a writ application before the Court of Appeal today (01 Oct) challenging the Inland Revenue Department’s decision to abolish the Simplified Value Added Tax (SVAT).

The Inland Revenue Department recently announced that SVAT would be abolished and replaced with the Risk-Based Refund Scheme (RBRS), effective 01 October 2025.

According to the Free Trade Zone Manufacturers’ Association, the petitioners argue that the new policy was introduced without first operationalising the automated refund mechanism mandated by law.

The RBRS scheme is designed to facilitate timely VAT refunds, with refunds to be issued within 45 days depending on the taxpayer’s risk classification. Under the new system, eligible VAT registrants — including exporters, projects, and project suppliers — will be assessed and categorized as low, medium, or high risk, which will determine how refunds are processed.

Refunds will apply to taxable periods commencing on or after 01 October 2025.

A new gazette notification issued by the Minister of Transport, Highways, Ports and Civil Aviation has made it mandatory for drivers and all passengers traveling along expressways to wear seat belts.

According to the regulation, the driver and every passenger occupying a seat in a motor vehicle on an expressway must wear an individual safety seat belt while the vehicle is in motion.

The gazette further stipulates that no vehicle will be permitted to enter or operate on an expressway unless it is fitted with seat belts for the driver and all passengers.

A special discussion was held at the Presidential Secretariat between the Royal Melbourne Institute of Technology (RMIT) and Secretariat officials to raise awareness and facilitate the establishment of an RMIT Innovation Hub in Sri Lanka, the President’s Media Division (PMD) announced.

The meeting was organized in coordination with the National Initiative for Research and Development Commercialization (NIRDC).

According to the PMD, the proposed RMIT Sri Lanka Innovation Hub will:

• Strengthen existing Joint PhD programmes and expand opportunities for collaborative research.
• Address national challenges through R&D solutions aligned with Sri Lanka’s research policies and priorities.
• Foster partnerships between RMIT, local universities, industries, and government institutions.
• Deliver innovative technological solutions to support businesses and commercialize research.
• Provide international access and training opportunities for Sri Lankan scientists, researchers, and students.
• Contribute to the country’s economic, scientific, and technological advancement through new investments and research projects.

The outcomes of this initiative are expected to be shared widely with the public, the PMD added.

YOLANDA FOSTER

Dr. Kasipillai Manoharan has left us, but the imprint of his courage and moral clarity will remain. He was first and foremost a father, and through his devotion to his son Ragihar he became one of the most steadfast voices for justice in Sri Lanka.

When Ragihar and four other students — the Trinco 5 — were brutally killed in 2006, Dr. Manoharan’s life was shattered. Yet from that grief he carved a path of dignity and truth-telling. He spoke when silence was safer and stood up when others were forced down. He carried not only his son’s story, but also the unspoken stories of many families who had lost loved ones to violence and impunity.

I first met him in 2008 while working with the South Asia team at Amnesty International, at a time when human rights abuses in Sri Lanka were on the rise. What struck me most was his integrity. He told me clearly that he was not political, but that as a father he felt bound to seek justice for his son. It was through his devotion to Ragihar that he became one of the clearest voices for truth and justice in Sri Lanka.
In the years that followed, we often exchanged information about the deteriorating situation in Sri Lanka and his deep concerns for civilians still caught in the aftermath of war. In May 2010, to mark the first anniversary of the war’s end, he joined a global action aimed at focusing worldwide attention on impunity. At its heart was a petition to Secretary-General Ban Ki-moon calling for an independent international investigation — a demand that reflected both his personal struggle and the broader call for accountability.

Two years later, Dr. Manoharan carried that demand in person to New York, delivering a petition directly to Ban Ki-moon’s office. It was more than advocacy; it was a father’s plea, carrying the weight of love, memory, and hope for justice. Soon after, we travelled together to Geneva, where he addressed the Human Rights Council and delivered Amnesty International’s statement during Sri Lanka’s Universal Periodic Review. Despite his grief, he sent a clear and unflinching message: the Council must act. I was with Dr Manoharan in Geneva when the Council adopted Resolution 30/1 which endorsed the findings of the OHCHR investigation on Sri Lanka (OISL) and passed a resolution to begin investigations. This milestone was reached thanks to the relentless advocacy of Sri Lankan campaigners like Dr Manoharan and others.

For me personally, Dr. Manoharan’s integrity became an anchor in my own campaigning. At a time when the Sri Lankan government tried to silence dissent — even branding Amnesty International “liars” and “apologists for terror” — working with defenders like him preserved our commitment to non-partisanship and reminded me why we had to speak out. His courage steadied mine.

What made him powerful was his honesty as a father. He never sought to politicise his son’s case or turn it into a weapon for factional gain. Instead, he spoke in the direct, unembellished language of truth. At a time when human rights abuses flourished in Sri Lanka under a veil of secrecy, his voice cut through with a clarity that reached further than reports or statistics. His story, told with quiet but unwavering conviction, spoke truth to power in a way few others could.

That solidarity stretched across borders. Amnesty International USA’s Sri Lanka Country Specialist Jim McDonald, together with ordinary volunteers in the Get on the Bus campaign, carried the Trinco 5 case into the streets of New York and beyond. Their persistence kept the demand for justice alive in places far from Trincomalee. Dr. Manoharan valued such solidarity, for it showed him that ordinary people – not only diplomats and institutions – were carrying Ragihar’s story and insisting on the truth.

Dr. Manoharan was also proud of his work as a doctor, recalling how he tended to members of the Armed Forces as well as ordinary citizens when he lived in Trincomalee. I remember him showing me photos of his son’s funeral, which revealed how all communities supported Ragihar and his family. Despite the state’s pretence and denial, he wanted me to know that most Sri Lankans care for community and friendship.
To me, he will always remain a symbol of integrity – and a reminder that truth has its own quiet power, one that endures beyond fear and beyond death.

This week, as the Human Rights Council discusses a new resolution on Sri Lanka, the best homage to Dr. Manoharan would be to honour that plea. The Council’s mandate is to defend the rights of victims’ families like his, which makes it incumbent never to forget cases such as the Trinco 5. Member states must ensure that monitoring and investigations continue, and that the campaign for truth he sustained does not end with his passing.

Fitch Ratings has affirmed Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘CCC+’, noting that despite the completion of the country’s debt restructuring in 2024, risks remain due to elevated government debt levels and a high interest-to-revenue ratio.

The agency highlighted that Sri Lanka’s ongoing reforms are supporting a solid economic recovery, with low inflation, substantial fiscal adjustments, and improvements in the external finance position.

“Substantial progress has been made under the 48-month IMF programme,” Fitch noted, citing the passage of the 2025 budget in line with programme targets, restoration of cost-reflective electricity pricing, improved tax compliance and revenue administration, and reforms to the Ceylon Electricity Board and other state-owned enterprises.

Fitch added that improving the investment climate, particularly in terms of foreign direct investment (FDI), will be key to bolstering Sri Lanka’s medium-term growth, though progress is likely to be incremental.

Looking ahead, Fitch said a substantial decline in the government debt-to-GDP ratio, supported by credible fiscal consolidation, stronger revenue growth, and faster economic expansion, could pave the way for a future rating upgrade.

A few showers may occur in Western and Sabaragamuwa provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts.

Mainly fair weather will prevail over elsewhere of the island.

Fairly strong winds of about (30-40) kmph can be expected at times over Western slopes of the central hills and in Northern, North-central, North-western, and Central provinces and in Trincomalee and Hambantota districts.