Sri Lanka construction activity spikes in Jan 2025, firms faced with labour shortage: PMI

Sri Lanka’s construction sector activity spiked in January 2026, registering a value of 75.0, up from the previous month’s 67.1, on a Purchasing Managers Index compiled by the central bank.

This was the index’ second-highest reading on record after the peak of 75.7 in July 2020, CBSL said.

Firms reported increased project activity during the month, driven by the commencement of new projects in the new year, the central bank said.

Sri Lanka has also commenced reconstruction work after Cyclone Ditwah caused much damage to infrastructure and buildings in late November.

The central bank said last month that ongoing post-cyclone reconstruction efforts are expected to provide momentum to the construction activities.

The Employment Index expanded compared to the previous month, reflecting higher hiring levels.

“However, many firms emphasised the persistent difficulties faced in recruiting employees to various skilled occupational categories,” the central bank said.

The New Orders sub index expanded, “driven by increased project availability across most construction segments” according to CBSL. The sub index registered 77.8, up from December’s 67.1.

The Quantity of Purchases Index increased further in January, as firms continued to build up inventories for scheduled projects. The sub index registered 65.3, up from 54.2 the previous month.