Sri Lankan Construction Sector Grows 12.2% in Q3 2025

The Sri Lankan construction industry has maintained its robust recovery trajectory, recording a double-digit growth of 12.2% during the third quarter of 2025. According to the latest data from the Department of Census and Statistics (DCS), the sector is acting as a primary catalyst for broader economic activity in real estate and professional services.

Key Highlights of the Quarter:

• GDP Contribution: The sector generated Rs. 499.9 billion in Gross Value Added (GVA) at current prices, securing a 6.0% share of the national GDP for the period ending September 30.

• Supply Rebound: Physical construction activity was bolstered by a significant 17.7% jump in cement supply.

• Rising Costs: While activity surged, the Construction Cost Index showed a moderate increase of 3.0 points, indicating manageable inflationary pressures on building materials.

Sectoral Spillover Effects:

The resurgence in construction has triggered a “ripple effect” across the supply chain:

• Mining & Quarrying: The mining of construction materials grew by 17.8%, fueled by the demand for raw aggregates.

• Timber Production: The State Timber Corporation reported a massive 49.0% surge in log production to meet project requirements.

• Real Estate: Real estate activities grew by 3.5%, while the combined turnover of 19 listed real estate companies on the Colombo Stock Exchange climbed 24.1% compared to last year.

• Consultancy Services: Demand for architects, engineers, and legal consultants pushed the professional services sector up by 3.7%.

Cumulative Performance:

On a year-to-date basis, the construction sector has expanded by 10.5% over the first nine months of 2025. Total value added for the year now stands at Rs. 1.38 trillion, signaling a sustained and healthy recovery for one of the country’s most vital economic pillars.

Source: https://www.dailymirror.lk/print/breaking-news/Construction-sector-momentum-continues-with-12-2-growth-in-3Q/108-328029