Government Budget signals decisive juncture for construction industry, says CIOB

THE 2026 National Budget signals a cautious revival of Sri Lanka’s construction and infrastructure sector, but industry leadership warns that contractors must adapt to a rapidly changing economic environment.

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Ceylon Institute of Builders President

In a statement issued yesterday, the President of the Ceylon Institute of Builders (CIOB) welcomed the Government’s renewed commitment to expressway development, irrigation rehabilitation and housing programs. However, he emphasised that private sector construction activity is now larger and growing faster than Government-funded projects, marking a significant shift in how construction work will be sourced in the coming years.

“We are entering a new era. The State is still a key client, but it is no longer the primary driver of construction demand,” he said.

Public sector projects continue, but at a controlled scale