SL Construction Growth Eases in Feb but Remains Strong 📈

Sri Lanka’s construction sector continued its expansionary trend in February 2026, though at a slightly moderated pace compared to the previous month. • Overall Activity: The Total Activity Index recorded 70.3 in February, down from 75.0 in January, signaling a slower but steady growth rate. • Project Inflows: The New Orders Index expanded as firms reported a broader range of available projects, supported by favorable weather conditions. • Labor & Procurement: The Employment Index rose to 56.8 (from 54.2), reflecting increased hiring. Quantity of Purchases also grew to support heightened site activity. • Supply Chain Hurdles: Suppliers’ Delivery Time remained lengthened due to high demand and import delays linked to the Chinese New Year. • Future Outlook: While the industry remains positive, firms are cautious regarding downside risks, specifically rising input costs and Middle East conflict-related supply constraints. _Source: Central Bank of Sri Lanka (Provisional Data)_