Construction sector sees improvement: CBSL

Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction) recorded an index value of 54.5 in May 2024, indicating an improvement in construction activities. 

Index compiler Central Bank said many construction projects were back on course in May after the extended holidays of the previous month. However, several respondents mentioned that the prevailed adverse weather conditions had dampened the expected improvement.

New Orders marginally increased in May compared to the previous month. As per the survey participants, road construction projects are the mostly available large-scale tenders at present. Many of them emphasised the necessity of more sizable infrastructure projects to stimulate the construction industry. 

Employment continued to contract, yet at a slower pace in May, as the firms are still cautious in hiring. Further, Quantity of Purchases remained at the same level as in the previous month. 

CBSL said many respondents mentioned that the price levels of construction-related materials continued to decline during the month, which is conducive to the industry. 

Suppliers’ Delivery Time remained lengthened in May as well.

“The outlook for construction activities over the next three months remains positive, mainly due to the expected increase in project availability,” CBSL added.