The construction industry in Sri Lanka is expected to have shrunk by 21.4% in real terms this year, following an annual decline of 27.2% in 2022. The continued weakness in the industry is attributed to headwinds such as high inflation, falling exports, the depreciation of the local currency, and a rise in construction material prices. According to the Department of Census and Statistics (DCS), the total value of exports (measured in US dollar terms) fell by 10.1% year-on-year (YoY) in the first nine months of 2023, following an overall annual growth of 4.9% in 2022.
The construction industry is, however, expected to record an average annual growth rate of 6% from 2024 to 2027, supported by easing foreign exchange liquidity pressures, strong remittances, improved tourism earnings, and rising private investment in the construction industry. The Sri Lankan government announced its 2024 Budget in November 2023. As part of the latest budget, the government increased its expenditure by 33%, to LKR7 trillion ($18.9 billion). Of the total, LKR1.3 trillion ($3.5 billion) has been allocated for capital expenditure. The government allocated 20.8% of the total capital budget - equivalent to LKR354.8 billion ($961 million) towards the Ministry of Transport and Highways; it had also allocated 3.5% towards the Ministry of Health, 3.2% towards the Ministry of Education, 2.5% towards the Ministry of Power and Energy, 2.3% towards the Ministry of Urban Development and Housing and 0.7% towards the Ministry of Tourism and Lands. The fiscal deficit target for 2024 is set at LKR2.9 trillion ($7.7 billion) - equivalent to 9.1% of GDP; this is higher than the revised 8.5% set for 2023, but below the IMF target of 12% set for 2024.
The construction industry is, however, expected to record an average annual growth rate of 6% from 2024 to 2027, supported by easing foreign exchange liquidity pressures, strong remittances, improved tourism earnings, and rising private investment in the construction industry. The Sri Lankan government announced its 2024 Budget in November 2023. As part of the latest budget, the government increased its expenditure by 33%, to LKR7 trillion ($18.9 billion). Of the total, LKR1.3 trillion ($3.5 billion) has been allocated for capital expenditure. The government allocated 20.8% of the total capital budget - equivalent to LKR354.8 billion ($961 million) towards the Ministry of Transport and Highways; it had also allocated 3.5% towards the Ministry of Health, 3.2% towards the Ministry of Education, 2.5% towards the Ministry of Power and Energy, 2.3% towards the Ministry of Urban Development and Housing and 0.7% towards the Ministry of Tourism and Lands. The fiscal deficit target for 2024 is set at LKR2.9 trillion ($7.7 billion) - equivalent to 9.1% of GDP; this is higher than the revised 8.5% set for 2023, but below the IMF target of 12% set for 2024.
The 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 (2018-2022) and forecast (2023-2027) 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 the 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 strategy using the 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 Profile8 Contact the Publisher
7 Appendix
List of Tables
List of Figures
