Sri Lanka’s construction sector is emerging as one of the clearest beneficiaries of the country’s economic recovery, driven by rising bank lending, stronger foreign investment and higher demand for building materials, the Daily Mirror reported.
Citing industry data, the report said credit to the construction sector expanded 18.8 percent in 2025 to a record 1.81 trillion rupees, while foreign direct investment into housing, hotels and commercial buildings rose 55 percent to US$173 million. Building material imports increased 9.7 percent to US$1.02 billion.
The sector grew 9.2 percent in 2025, making it one of the fastest-growing segments of the economy. Cement consumption climbed 16 percent to 5.29 million metric tonnes from 4.56 million tonnes a year earlier, with locally manufactured cement sales up 25.7 percent.
A review in Tokyo Cement’s latest annual report attributed the revival to lower interest rates, improving business confidence and easier access to financing, which allowed developers and contractors to restart projects delayed during the economic crisis. It cited the resumption of the Kadawatha-Mirigama section of the Central Expressway, the Colombo Port Expansion Project, government housing initiatives and Colombo Port City among the developments supporting the rebound.
Foreign direct investment into the sector is projected to rise further to around US$210 million in 2026, supported by reforms aimed at attracting large-scale investment.
