Real-estate & Construction Economy & Growth

Construction sector continued to expand in June 2025

The Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction), as reflected by the Total Activity Index, recorded a value of 58.6 in June 2025, indicating a continuous expansion in construction activities. Many firms attributed this growth to favourable industry conditions, particularly exhibited by the steady increase in project work and stable price levels.

The New Orders Index further increased during the month as respondents observed more construction projects being granted, particularly in road infrastructure. In addition, several firms reported that negotiations are underway to recommence some of the temporarily halted construction projects. Further, with the continuous increase in construction work, the Employment Index turned positive and the Quantity of Purchases Index further expanded in June. Meanwhile, the Suppliers’ Delivery Time lengthened during the month.

Most of the firms are optimistic about the next three months, mainly due to the increased availability of projects.