Sri Lanka's construction sector remained in expansion during August 2026, although the pace of expansion slowed from the previous month, according to the Central Bank of Sri Lanka.
The Construction Purchasing Managers' Index, measured through the Total Activity Index, recorded 59.4 in August.
An index reading above 50 indicates an expansion in activity compared with the previous month.
The August reading was lower than July's 61.4.
The fall from 61.4 to 59.4 therefore means that construction activity continued to expand, but at a slower pace.
It does not indicate that the construction sector contracted.
The Central Bank said the New Orders Index strengthened further during August, mainly because of Government-funded projects.
Employment and Quantity of Purchases also remained in expansion territory.
However, many survey respondents continued to report shortages of bitumen.
The Central Bank said the shortage constrained progress in road construction and limited the industry's overall growth momentum.
Persistent shortages of skilled labour and some raw materials were also reported as constraints.
Suppliers' delivery times remained extended, reflecting existing workloads among suppliers.
Construction firms remained positive about activity over the following three months, supported by newly awarded projects.
However, bitumen shortages and fluctuations in material prices continued to be identified as challenges to that outlook.
The PMI is a survey-based indicator of month-to-month business conditions.
A reading above 50 signals expansion relative to the previous month; it does not by itself measure the construction sector's absolute output, GDP contribution or profitability.