Sri Lanka Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H2 2025)
Description
Sri Lanka Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H2 2025)
Summary
GlobalData 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.
GlobalData’s Construction in Sri Lanka - Country Briefing (H2 2025) report provides detailed market analysis, information, and insights into the Sri Lankan construction industry, including -
This report provides a comprehensive analysis of the construction industry in Sri Lanka. It provides:
Summary
GlobalData 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.
GlobalData’s 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.
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
- 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 GlobalData's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
30 Pages
- 1 Executive Summary
- 2 Construction Industry: At-a-Glance
- 3 Latest news and developments
- 4 Project analytics
- 5 Construction Market Data
- 6 Risk Profile
- 7 Appendix
- 7.1 Definitions
- 7.2 CRI Methodology
- 7.3 About GlobalData
- 8 Contact Us
- List of Figures
- Figure 1: Sri Lanka, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020–29
- Figure 2: Sri Lanka, Construction Output Value, by Sector (Real, $ Million), 2020–29
- Figure 3: South Asia, Construction Output (Real % Change), 2023–29
- Figure 4: Sri Lanka, Construction Output by Sector (Real % Change), 2023–25 and 2026–29
- Figure 5: Sri Lanka, Construction Output (LKR Million, 2015 Constant Prices)
- Figure 6: Sri Lanka, Construction Value-Add (LKR Million, 2015 Constant Prices)
- Figure 7: Sri Lanka, Gross Fixed Capital Formation (LKR Million, 2015 Constant Prices)
- Figure 8: Sri Lanka, Construction PMI
- Figure 9: Sri Lanka, Property Price Indices (2019 = 100)
- Figure 10: Sri Lanka, Total Domestic Cement Production (1,000 MT)
- Figure 11: Sri Lanka, Real Estate Activity and Dwelling Ownership Value Add (LKR Million, 2015 Constant Prices)
- Figure 12: Sri Lanka, Tourist Arrivals (In Numbers)
- Figure 13: Sri Lanka, Tourism Sector Earnings ($ Million)
- Figure 14: Sri Lanka, Accommodation and Food and Beverage Services Value-Add (LKR Million, 2015 Constant Prices)
- Figure 15: Sri Lanka, Wholesale and Retail Trade Value-Add (LKR Million, 2015 Constant Prices)
- Figure 16: Sri Lanka, Manufacturing PMI
- Figure 17: Sri Lanka, Index of Industrial Production, 2015=100
- Figure 18: Sri Lanka, Total Exports ($ Million)
- Figure 19: Sri Lanka, Electricity Generation, in GWh
- Figure 20: Sri Lanka, Telecommunication Value Add (LKR Million, 2015 Constant Prices)
- Figure 21: Sri Lanka, Sewerage, Waste, Treatment, and Disposal Activities Value-Add (LKR Million, 2015 Constant Prices)
- Figure 22: Sri Lanka, Water Collection, Treatment, and Water Supply Value-Add (LKR Million, 2015 Constant Prices)
- Figure 23: Sri Lanka, Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 24: Sri Lanka, Risk Summary
- Figure 25: Sri Lanka, Risk Regional Comparison
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