🇱🇰 Construction Industry: Private Sector to Dominate 2026 Output 📈

• The Ceylon Institute of Builders (CIOB) welcomes the 2026 Budget's commitment to essential infrastructure, including expressways, irrigation, and housing programs. • Key Structural Shift: The private sector is now driving construction demand, expected to contribute significantly more to output than the projected Gov't expenditure of Rs. 550–650 Bn in 2026. • Public Investment Focus: Targeted spending includes Rs. 342 Bn for road development (Central Expressway resumption), Rs. 91.7 Bn for reservoir/canal rehabilitation, and Rs. 85.7 Bn for expanded community water supply. • Private Sector Drivers: Growth is fueled by the revival of tourism, export manufacturing zones, logistics facilities, commercial buildings, and urban housing development. • Strategic Caution: CIOB warns that contractors must adapt by moving away from sole reliance on State contracts. They must focus on private investment, PPPs, stronger financial planning, and adopting digital project management tools to ensure stability. • Economic Impact: The construction industry is expected to contribute approximately 7% to Sri Lanka’s GDP in 2026.