Construction activity dips in April on holiday lull

Sri Lanka’s construction sector saw activity ease in April, as work slowed over the Sinhala and Tamil New Year holidays, though the decline was less severe than a year ago, the Central Bank said yesterday.

The Construction Purchasing Managers’ Index (PMI) dropped to 41.4 in April, reflecting a seasonal contraction. 

In the PMI, an activity is separated between an expansion and a contraction at an index value of 50.0.

“Most of their construction sites were temporarily closed for an extended period during the month, due to the New Year celebrations,” the Central Bank said.

While new orders fell, due to the limited number of working days, the survey respondents noted a pickup in pre-project activity. A growing number of construction projects are currently under evaluation, while several others are open for tender.

Employment and purchases also declined, in line with the reduced construction volumes and suppliers’ delivery times lengthened, due to the holiday disruptions.

Despite April’s slowdown, the short-term outlook remains positive. The outlook for construction activities over the next three months is positive, with operations expected to return to normalcy, the report noted.