The analyst expects the construction industry in Sri Lanka to grow by 7.9% in real terms in 2025, as the sector is supported by an increase in public and private sector investments into transport infrastructure and energy projects. In addition, the country is expecting to witness a recovery in the tourism sector, which will create demand for new hospitality, leisure, and retail developments, boosting commercial construction. According to the Department of Census and Statistics (DCS), the construction industry’s value-add grew by 9.6% year-on-year (YoY) in H1 2025, building on substantial annual growth of 19.4% in 2024. Moreover, the overall gross fixed capital formation grew by 11.9% in H1 2025, continuing the positivity after annual growth of 11.9% in 2024.
Over the remainder of the forecast period, the construction industry is expected to record an average annual growth rate of 5.2% from 2026 to 2029, supported by public and private investments in infrastructure and energy construction projects, coupled with the government’s aims to generate 70% of its electricity from renewable sources by 2030. The Government also aims to achieve net zero emissions by 2050. In August 2025, Sri Lanka’s Ceylon Electricity Board (CEB) issued a tender for a 160MW battery energy storage system (BESS) on a build-operate-own basis to support greater renewable energy integration into the grid. Under the plan, CEB will deploy 10MW/40MWh battery systems across 16 sites, totaling 640MWh of storage by 2026.
Over the remainder of the forecast period, the construction industry is expected to record an average annual growth rate of 5.2% from 2026 to 2029, supported by public and private investments in infrastructure and energy construction projects, coupled with the government’s aims to generate 70% of its electricity from renewable sources by 2030. The Government also aims to achieve net zero emissions by 2050. In August 2025, Sri Lanka’s Ceylon Electricity Board (CEB) issued a tender for a 160MW battery energy storage system (BESS) on a build-operate-own basis to support greater renewable energy integration into the grid. Under the plan, CEB will deploy 10MW/40MWh battery systems across 16 sites, totaling 640MWh of storage by 2026.
The Construction in Sri Lanka - Country Briefing (H2 2025) 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.
Report Scope
This report provides a comprehensive analysis of the construction industry in Sri Lanka. It provides:
- Historical (2020-2024) and forecast (2025-2029) 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
