Sri Lanka’s Purchasing Managers’ Index for Construction (PMI – Construction) surged to 59.5 in June 2024, marking its highest value in 30 consecutive survey rounds. Respondents attributed this growth mainly to projects funded by multilateral agencies, particularly those related to road rehabilitation and water distribution.
June saw a significant increase in new orders, indicating a positive outlook for future industry activity. Although employment remained contracted during the month, the rate of contraction was slower compared to the previous month. The quantity of purchases also rose, driven by the accelerated demand for input materials. Additionally, many respondents reported a declining trend in the prices of most construction materials. However, suppliers’ delivery times further lengthened in June.
Expectations for construction activities over the next three months remain positive due to the gradual increase in project availability. Nevertheless, many firms remain cautious about potential uncertainties associated with the upcoming election period.