ECONOMYNEXT – Sri Lanka’s construction sector further expanded to 59.7 in May 2025, from 48.6 in April 2025, according to a Purchasing Managers Index compiled by the central bank.
“Most of the survey respondents mentioned that construction activities regained momentum in May, recovering from the slowdown in the April festive season,” the statement said.
“The respondents reported an increase in the awarding of new construction projects during the month, particularly in road development, which led to an increase in the New Orders index.”
New Orders rose from below the neutral threshold of 50.0 in April to 56.9 in May. It was 48.6 in April.
“The Quantity of Purchases index also increased during the month, in line with the increase in Total Activity and New Orders. Meanwhile, the Employment index contracted at a slower rate in May. The Suppliers’ Delivery Time shortened during the month.”
Employment index contracted at a slower pace in May, down at 45.7 from 35.7 in April.
Quantity of Purchases index increased during the month, 56.9 in May from 35.7 in April, reflecting the improvement in industry operations.
Suppliers’ Delivery Time remained shortened during the month, registering 45.8 in May, compared to 52.9 in the previous month.
The outlook for construction activities for the next three months is positive due to the anticipated increase in the availability of new projects, the Central Bank said. (Colombo/June 30/2025)
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