Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction) indicates an expansion in construction activities in January 2024, as reflected by the Total Activity Index, which recorded an index value of 52.9. This marks the first time that the index exceeded the neutral threshold since January 2022. Many respondents mentioned that new construction work is gradually becoming available, while some suspended projects also recommenced on a limited scale during the month.

Land Valuation Indicator (LVI) for Colombo District indicated a slowdown on a year-on-year basis, recording a growth rate of 7.1 per cent during the second half of 2023. This slowdown could be observed in all sub-indicators of LVI, namely Residential, Commercial and Industrial LVIs which recorded annual increases of 8.8 per cent, 6.7 per cent and 5.9 per cent, respectively. LVI indicated a deceleration on semi-annual basis as well registering a moderate growth of 2.1 per cent during the second half of 2023, compared to the first half of 2023. This deceleration was largely attributable to the slower increase in Industrial LVI followed by Commercial and Residential LVIs compared to the first half of 2023.