Sri Lanka’s Construction PMI expands in August
The Morning: The Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction), as reflected by the Total Activity Index, increased to 61.1 in August, indicating a continuous expansion in construction activities.
As per the respondents, the ongoing increase in project availability, along with the resumption of some temporarily suspended projects, has strengthened the confidence of the construction sector.
The New Orders Index also increased in August. According to survey respondents, road development and water supply work were the most commonly awarded project types during the month.
In August, both the Employment and Quantity of Purchases indices increased, indicating the optimism for continued growth in the construction work.
Meanwhile, the suppliers’ delivery time further lengthened during the month, driven by the increase in demand for construction material.
OSL take:
The expansion in Sri Lanka’s Construction PMI is a clear indication of the overall growth and expansion of the country’s economy. While being presented as an emerging business destination in the South Asian region, Sri Lanka is also on the path to becoming a regional hub supported by Sri Lanka’s geographical positioning, the strong trade ties with many foreign countries, the business conducive environment in the country and the many incentives on offer for foreign businesses/investors. However, the expanding economic activities have opened many business/investment opportunities in the country with the construction sector also presenting many lucrative opportunities for foreign businesses/investors. The resumption of temporarily suspended projects and the recommencement of the country’s development programme have all presented many business/investment opportunities. The increasing demand due to the target of achieving regional hub status has resulted in Sri Lanka’s construction industry moving at a face pace to meet the fast-evolving global business landscape. Given all these factors, foreign businesses/investors could explore the expanding business/investment opportunities in Sri Lanka’s construction industry and related sectors.
| Article Code : | VBS/AT/20251007/Z_1 |