📈 Sri Lanka Construction Sector PMI Analysis: April 2026

The construction sector experienced a contraction in April 2026, primarily driven by seasonal factors and supply chain constraints. • Total Activity Index: Declined to 45.7, reflecting a seasonal slowdown due to the Sinhala and Tamil New Year. • New Orders: Continued to expand, supported by steady project availability, particularly in _road rehabilitation_. • Employment: The index remained in an expansionary phase as firms continued recruitment to meet project demands, despite persistent shortages in skilled labor categories. • Supply Chain & Costs: The Quantity of Purchases index declined, while suppliers' delivery times lengthened. Respondents noted input shortages, notably petrochemical-based raw materials, and rising costs linked to Middle East geopolitical tensions, which may necessitate project price renegotiations. • Business Outlook: Sentiment remains positive for the next three months, anchored by a consistent project pipeline, though moderated by global geopolitical uncertainty. Note: Based on the April 2026 PMI report.