The Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction), as reflected by the Total Activity Index, recorded a value of 57.1 in March 2026, indicating continued expansion in construction activities, albeit at a slower pace than the previous month. Many respondents reported a challenging operating environment, mainly due to limited availability of fuel and raw materials, rising costs, and logistical bottlenecks stemming from the conflict in the Middle East.
The New Orders Index continued to expand during the month, with most respondents reporting that project flows remained robust. The Employment and Quantity of Purchases Indices increased further in March, indicating that firms continued with planned hiring and procurement despite prevailing uncertainties. Many respondents noted that amid expectations of further price increases, most firms sought to build up stocks, while suppliers tended to hold back on materials. Meanwhile, the Suppliers’ Delivery Time lengthened notably during the month, mainly reflecting transportation-related delays.
Expectations for construction activities over the next quarter remained above the neutral threshold, supported by a steady pipeline of projects, though somewhat tempered by uncertainties surrounding the ongoing Middle East conflict.