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Construction sector activity slows in August amid bitumen supply constraints

Sri Lanka's construction Purchasing Managers' Index declined in August as bitumen shortages disrupted roadworks across the country. The supply constraints have begun to weigh on project timelines and sector momentum.

LSN Sri Lanka · 4 October 2026

Construction activity in Sri Lanka moderated during August, with the sector's Purchasing Managers' Index reflecting softer conditions as material shortages impacted ongoing projects. The decline was primarily attributed to constraints in bitumen availability, which have hampered road construction and maintenance operations nationwide.

Bitumen scarcity has emerged as a significant bottleneck for infrastructure development, forcing contractors to adjust work schedules and delaying completion timelines on multiple fronts. The shortage underscores broader supply-chain vulnerabilities affecting Sri Lanka's construction sector, which has faced intermittent challenges in securing critical imported materials.

The easing of construction PMI suggests a cooling in sector momentum after a period of relative improvement. Industry participants have flagged the urgent need to address material supply disruptions to sustain infrastructure development momentum and maintain employment levels across the construction workforce.

The bitumen constraints reflect wider procurement difficulties that continue to constrain economic activity in key sectors. Authorities have been engaged with suppliers and importers to alleviate shortages and restore steady material flows to construction projects across the island.