The analyst forecasts that the construction industry in Sri Lanka is expected to expand by 7.3% in real terms in 2024, following an annual decline of 21.8% in 2023, owing to low base effects, and an increase in gross fixed capital formation, and investment in the infrastructure, and energy and utilities sectors, coupled with an improvement in external demand. Moreover, the gross fixed capital formation grew by 16% YoY in the first six months of 2024, increasing from LKR1.3 trillion ($3.4 billion) in January-June 2023 to LKR1.5 trillion ($4 billion) January-June 2024. In December 2023, the Sri Lankan government announced the 2024 Budget, totaling LKR7 trillion ($18.5 billion), a 32.8% increase from LKR5.3 trillion ($14 billion) in the 2023 Budget.
Some of the major allocations include LKR410 billion ($1.09 billion) for the Ministry of Health, LKR404 billion ($1.07 billion) for the Ministry of Transport and Highways, and LKR237 billion ($627.5 million) for the Ministry of Education. In October 2024, the World Bank and the Government of Sri Lanka signed the Second Resilience, Stability, and Economic Turnaround (RESET) Development Policy Operation (DPO) worth LKR75.5 billion ($200 million). The construction industry is expected to record an average annual growth rate of 6% from 2025 to 2028, supported by public and private investments in industrial, infrastructure and energy construction projects; coupled with the government's commitment to support renewable development. The country aims to generate 70% of its electricity from renewable sources by 2030, with aim to generate 3,805MW from solar power, 1,475MW from wind power, and establish 1,100MW Battery Energy Storage System (BESS) capacity, and 700MW Pumped Storage Plants (PMP) by 2030. In March 2024, the country announced that it is planning to raise LKR4.3 trillion ($11.3 billion) in investments over the next eight years to achieve its renewable energy goals by 2030.
Some of the major allocations include LKR410 billion ($1.09 billion) for the Ministry of Health, LKR404 billion ($1.07 billion) for the Ministry of Transport and Highways, and LKR237 billion ($627.5 million) for the Ministry of Education. In October 2024, the World Bank and the Government of Sri Lanka signed the Second Resilience, Stability, and Economic Turnaround (RESET) Development Policy Operation (DPO) worth LKR75.5 billion ($200 million). The construction industry is expected to record an average annual growth rate of 6% from 2025 to 2028, supported by public and private investments in industrial, infrastructure and energy construction projects; coupled with the government's commitment to support renewable development. The country aims to generate 70% of its electricity from renewable sources by 2030, with aim to generate 3,805MW from solar power, 1,475MW from wind power, and establish 1,100MW Battery Energy Storage System (BESS) capacity, and 700MW Pumped Storage Plants (PMP) by 2030. In March 2024, the country announced that it is planning to raise LKR4.3 trillion ($11.3 billion) in investments over the next eight years to achieve its renewable energy goals by 2030.
The Construction in Sri Lanka - Country Briefing (H2 2024) report provides detailed market analysis, information and insights into the Sri Lankan construction industry, including:
- The Sri Lankan construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Sri Lankan construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Sri Lanka. It provides:
- Historical (2019-2023) and forecast (2024-2028) valuations of the construction industry in Sri Lanka, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance3 Latest news and developments4 Project analytics5 Construction Market Data6 Risk Profile
7 Appendix
List of Tables
List of Figures
