COLOMBO, Feb. 28 (Xinhua) -- Sri Lanka's construction sector expanded sharply in January 2026, with the Purchasing Managers' Index (PMI) for Construction, as reflected by the Total Activity Index, rising from 67.1 in December to 75.0, the second-highest reading recorded, according to data released by the Central Bank of Sri Lanka on Friday.
The increase in the Total Activity Index indicated a higher rate of growth month on month. The January figure was second only to the peak of 75.7 recorded in July 2020.
Most firms reported higher project activity during the month, supported by the commencement of new projects at the start of the year and the easing of weather-related disruptions experienced in December.
The New Orders Index rose from 67.6 in December to 77.8 in January, due to increased project availability across most construction segments. The Employment Index also expanded, rising from 50.0 to 54.2, indicating growth from a neutral position. However, many firms reported ongoing difficulties in recruiting employees for various skilled occupational categories.
Construction activities are expected to remain upbeat over the next three months, supported by anticipated project commencements. ■
