The Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction), as reflected in the Total Activity Index, increased to 59.1 in May 2026, indicating an expansion in construction activities. Most survey respondents reported a resumption of construction activities during the month, following the slowdown experienced in the April festive period.
The New Orders index increased further in May, reflecting robust construction project awards during the month. Further, the Employment index continued to expand, underpinned by ongoing staff recruitment. However, many survey respondents cited the continued limited availability of skilled workers as a key constraint. The Quantity of Purchases index rebounded in May, in line with the increase in construction activities. However, persistently elevated prices of key construction materials remained a major concern among many survey respondents, along with shortages of materials such as bitumen. Meanwhile, the Suppliers’ Delivery Time remained broadly at the previous month’s level.
Business sentiment among construction firms remained positive over the next three months, supported by a sustained pipeline of construction projects and expectations of easing geopolitical tensions in the Middle East.
