🏗️ Sri Lanka’s Construction Sector Resilient Amid Global Tensions

Minister of Transport and Highways, Bimal Rathnayake, confirms that national infrastructure projects remain on track despite Middle East instability. The sector is entering a strategic expansion phase backed by a robust project pipeline. • Infrastructure Progress: The Central Expressway Phase III (Pothuhera–Rambukkana) is 75% complete as of March 2026. Extension works toward Galagedara are proceeding steadily without disruption. • Investment Pipeline: A public investment pipeline of Rs. 2 Trillion is allocated for 2026–2028. The government aims to maintain these timelines to drive post-crisis recovery. • Sector Growth Drivers: Demand is fueled by reconstruction efforts following Cyclone Ditwah (estimated damage of Rs. 878 Bn) and a general uptick in public infrastructure projects. • External Risks: While the construction sector is expected to outpace GDP growth, analysts warn of potential headwinds from rising input costs, tight financing, and energy price shocks linked to Middle East conflicts. _Note: Figures based on government statements and CT Smith Securities provisional reports._