The Sri Lanka Purchasing Managers’ Index for Construction    (PMI – Construction), as reflected by the Total Activity Index, declined to 45.7 in April 2026, mainly due to the seasonal slowdown associated with the Sinhala and Tamil New Year period. Further, many survey respondents cited input shortages, particularly of petrochemical-based raw materials, and rising costs stemming from the conflict in the Middle East as challenges to the timely execution of planned work.

Most firms reported continued availability of projects in April, particularly road rehabilitation activities, which underpinned the expansion in the New Orders Index. However, several respondents indicated that some new projects could face delays as rising raw material costs may require price renegotiations. The Employment Index continued to expand, reflecting ongoing staff recruitment by firms in response to steady project availability. However, many firms highlighted shortages across most skilled labour categories. The Quantity of Purchases Index declined in April, mainly due to lower levels of construction activity. Meanwhile, the Suppliers’ Delivery Time continued to lengthen during the month.

Business sentiment among construction firms remained positive over the next three months, driven by the steady flow of projects, though concerns over geopolitical developments persist.