Colombo, November 4, 2025:
Sri Lanka’s construction industry is showing its strongest resurgence in nearly four years, with the Purchasing Managers’ Index (PMI) for Construction surging to 67.6 in September 2025, according to data released by the Central Bank of Sri Lanka’s Statistics Department. This marks the highest level of construction activity recorded since late 2021, reflecting renewed optimism and steady momentum in the country’s infrastructure and development sectors.
The Central Bank report highlighted that persistent project opportunities, particularly in road rehabilitation and infrastructure development, have been key drivers of growth during the month. Nearly all categories of construction projects have reportedly become more active, signaling a broad-based recovery across the sector.
“The sustained pipeline of public and private construction projects has strengthened the industry’s recovery, supported by improving employment and purchasing activity,” the report noted.
📊 PMI Breakdown — September 2025
| Indicator | August 2025 | September 2025 | Trend |
| PMI – Total Activity Index | 61.1 | 67.6 | Rising, Higher Rate |
| New Orders | 59.7 | 68.9 | Rising, Higher Rate |
| Employment | 52.8 | 55.4 | Rising, Higher Rate |
| Quantity of Purchases | 58.3 | 56.8 | Rising, Slower Rate |
| Suppliers’ Delivery Time | 52.8 | 52.7 | Lengthening, Slower Rate |
Source: Central Bank of Sri Lanka
🏗️ Sector Outlook: Growth Momentum Builds
The sharp increase in New Orders and Employment underscores the construction sector’s expanding activity base. Meanwhile, the Quantity of Purchases also rose, suggesting renewed confidence among contractors and suppliers, even as delivery times lengthened slightly, reflecting supply-chain strain from heightened demand.
The Central Bank’s report projects a favourable outlook for the construction industry over the coming months, driven by sustained public infrastructure projects and the reactivation of stalled developments. Analysts say that this upward trend is particularly significant given the broader stabilization in Sri Lanka’s macroeconomic environment and improving investor sentiment.
🌍 Global Context: Sri Lanka Outpaces Peers
According to S&P Global’s PMI data, construction activity in major economies such as the Eurozone, France, Germany, Italy, and the UK continued to decline in September 2025. Only Ireland showed a rising trend, making Sri Lanka’s performance stand out as one of the few markets experiencing robust growth in the sector.
💬 TheCapitalist.lk Analysis
The construction PMI’s strong rebound is a critical signal of economic recovery and could have positive spillover effects on industries such as cement, steel, logistics, and real estate. The improvement in employment and purchasing patterns also indicates rising confidence among contractors and a return of liquidity into the sector.
With a Total Activity Index well above the neutral level of 50, the data suggests that Sri Lanka’s construction industry is not just recovering—but accelerating, positioning itself as a key pillar of the island’s post-crisis economic growth.
Reporter: Business Desk – TheCapitalist.lk
Source: Central Bank of Sri Lanka – Statistics Department (PMI Construction Report, September 2025)
