Construction sector expands 8.5% in 2Q bringing 1H growth to 9.6%

The local construction sector grew by a robust 8.5 percent in the three months ended in June 2025 from the same period in 2024, extending its nearly two-year long growth which began in the final quarter of 2023.

- 

This is in a sign that the sector appears to have entered a sustained growth path helping once again generate jobs while building a renaissance in the entire economy which Sri Lanka had a decade ago.

The sector suffered six quarters of prolonged decline since the second quarter of 2022. This was due to the unprecedented economic crisis which brought the work in both public and private sector projects to a standstill. This was caused by the lack of materials, cost overruns caused by runaway inflation, lack of funds due to tight monetary conditions and the challenge in finding people to work in the sites as many left the country seeking employment and better living standards.