Business · Sri Lanka Bureau
Sri Lanka construction sector PMI slips on bitumen supply constraints
Construction activity in Sri Lanka weakened during September as a shortage of bitumen hampered project progress, according to the latest purchasing managers' index data. The PMI decline reflects broader supply chain challenges affecting the island's building sector.
LSN Sri Lanka ·
Sri Lanka's construction activity index retreated in September, weighed down by critical shortages of bitumen that disrupted ongoing projects across the island. The purchasing managers' index, a key barometer of sectoral health, recorded a softening in business conditions as builders struggled to source essential materials for road and infrastructure work.
The bitumen shortage has emerged as a significant constraint on construction timelines, forcing contractors to delay activities and reschedule work. This supply disruption comes amid persistent challenges in Sri Lanka's import-dependent economy, where foreign exchange availability continues to restrict the procurement of critical raw materials.
Construction firms have reported increased costs and project delays as alternative sourcing options remain limited. The sector, which plays a vital role in employment and economic growth, has faced mounting headwinds throughout 2023 as import restrictions and currency pressures weigh on material availability.
Economists note that resolution of the bitumen shortage will require improved foreign currency management and streamlined import procedures. The construction industry's performance remains closely watched as an indicator of broader economic recovery prospects for the island nation.