In March, the Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction) showed positive signs with the Total Activity Index reaching 55.9, indicating an expansion in construction activities. This marks the third consecutive month where the index has stayed above the neutral threshold, signaling a consistent improvement in the sector. Although New Orders saw a slower increase compared to the previous month, there is a notable availability of projects for tendering; however, competition in pricing remains stiff among participants.
Employment figures continued to decline as companies dealt with turnover among experienced staff and remained cautious in their hiring processes. On the procurement front, the Quantity of Purchases rose in line with the increased activity levels, reflecting a proactive approach by construction entities. Interestingly, prices of certain construction materials decreased during the month, offering some relief in cost pressures. Suppliers’ Delivery Time remained unchanged from the previous month, indicating a steady pace in the supply chain operations for construction materials.