Sri Lanka's construction sector continued to expand in July 2026, with the Central Bank's Construction Purchasing Managers' Index indicating a further increase in activity.
The Construction PMI Total Activity Index rose to 61.4 in July, from 60.0 in June.
An index value above 50 indicates an expansion in activity compared with the previous month.
New orders and employment expand
The July indicators showed continued expansion across several components of the construction sector.
New Orders recorded an index value of approximately 57.1, while Employment increased to approximately 61.8.
The Quantity of Purchases index rose to approximately 64.7, reflecting increased purchasing activity associated with ongoing construction work.
Expansion continues despite constraints
The stronger activity did not mean construction firms were operating without difficulties.
Businesses continued to report constraints including shortages of bitumen, shortages of skilled labour, supply-related difficulties and elevated prices for construction materials.
These factors continued to affect firms even as overall construction activity expanded.
Businesses remain positive about near-term outlook
Construction firms remained positive about activity over the coming three months, supported by expectations surrounding ongoing and future projects.
However, the continued availability and cost of labour and construction materials remain relevant risks to the sector.
What PMI 61.4 means
A PMI reading above 50 indicates that activity increased compared with the previous month among the businesses covered by the survey.
A reading of 61.4 should therefore not be interpreted as construction output having increased by 61.4%.
It is a diffusion index measuring the direction and breadth of change reported by surveyed firms.