Construction picks up as Sri Lanka’s PMI climbs in May
The Morning: Sri Lanka’s construction sector showed renewed strength in May, with the Purchasing Managers’ Index for Construction (PMI – Construction) total activity index rising to 59.7, signalling a rebound after the slowdown seen during the April festive season.
According to survey responses, construction activity regained momentum last month, supported by a notable increase in the awarding of new projects, especially in road development.
This uptick drove the new orders index higher for the period. Reflecting the surge in new work, the quantity of purchases index also improved alongside the rise in total activity.
Meanwhile, the sector’s employment index continued to contract but did so at a slower pace in May, suggesting that job reductions were easing.
The survey indicated that suppliers’ delivery time shortened during the month, pointing to smoother supply chain conditions compared to previous periods.
OSL take:
The upward trend in Sri Lanka’s PMI is in-line with the country’s overall economic expansion. Sri Lanka is on the path to becoming a regional hub supported by the geographical positioning of the country in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country with many foreign countries have all helped boost Sri Lanka’s economic activities. The expansion in the overall economic activities have also resulted in the growth in business/investment opportunities in Sri Lanka. These developments have on the other hand, presented a host of lucrative business ventures to foreign businesses/investors. The growth in the country’s construction industry presents a host of direct and indirect business opportunities that are revolving in nature. Sri Lanka’s path towards becoming a regional hub would further ensure the expansion of the local construction industry. The expansion of key economic sectors in the country has also boosted the construction industry, thereby ensuring a steady growth in business/investment opportunities. The interest shown by foreign businesses to explore opportunities in Sri Lanka’s construction industry is indicative of the growing business potential in the industry. Foreign businesses/investors could also look at further expanding operations in Sri Lanka’s construction industry through local collaborations.
| Article Code : | VBS/AT/20250704/Z_1 |