Sri Lanka’s June construction PMI hits highest in thirty surveys
The Morning: The Sri Lanka Purchasing Managers’ Index for construction (PMI – Construction) reached 59.5 in June 2024, recording its highest index value in thirty consecutive survey rounds.
Most of the respondents highlighted that the industry is mainly driven by projects funded by multilateral agencies, particularly related to road rehabilitation and water distribution.
New orders increased at a higher rate in June, indicating a positive outlook for future industry activity.
However, employment remained contracted during the month, yet at a slower rate compared to the previous month.
Meanwhile, the quantity of purchases increased with the accelerated demand for input materials.
Further, many respondents mentioned that the price levels of most of the construction materials are in a declining trend.
Moreover, suppliers’ delivery time further lengthened in June.
The expectations for construction activities for the upcoming three months remain positive due to the gradual increase in project availability.
However, many firms are cautious about the potential uncertainty associated with the upcoming election period.
OSL take:
Sri Lanka’s ongoing economic activities and the overall expansion is evident by the increase in activity in the construction industry. The growth recorded by the construction industry is indicative of the resumption of Sri Lanka’s development agenda, which in-turn presents a host of business/investment opportunities. It also indicates the circulation of funds within the Sri Lankan economy, especially for development projects. With Sri Lanka working towards becoming a regional hub supported by the country’s strategic positioning in the Indian Ocean and the strong trade ties, the business/investment opportunities in the construction industry are likely to see a two-fold increase in the coming months. The business/investment opportunities that are opening up in Sri Lanka are manifold covering many sectors in the construction industry. Foreign businesses/investors could confidently explore the expanding opportunities in Sri Lanka given the growing business potential in the country.