DUBLIN--(BUSINESS WIRE)--The "Sri Lanka Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026" report has been added to ResearchAndMarkets.com's offering.

The construction industry in Sri Lanka registered a marginal annual growth of 0.9% in real terms last year, following a contraction of 12% in 2020.

The industry's growth in 2021 was subdued owing to weak consumer and investor confidence amid newer waves of infections, as well as the subsequent imposition of Coronavirus (COVID-19) containment measures. The publisher has sharply revised downwards its growth projection for the Sri Lankan construction industry for 2022, which is now expected to shrink by 4.6% in real terms this year - down from the previous projection of a 9.2% growth.

This downward revision is attributed to the worsening economic crisis in the country, which was triggered by an acute shortage of foreign currency, ill-timed tax cuts, losses to tourism, a fall in foreign workers' remittances to Sri Lanka, shortages of food and fuel and high foreign debt.

In another setback for Sri Lanka, the country is facing a troubled political environment. Anti-government protests erupted in Colombo in March 2022, with people demanding the resignation of the Sri Lankan president Gotabaya Rajapaksa. The government has also lost its majority in parliament, after several lawmakers walked out of the ruling Podujana Peremuna (SLPP)-led coalition.

Apart from the economic and political crisis, the Sri Lankan construction industry's output in 2022 could also be affected by the rise in construction material prices and a shortage of cement. According to the CBSL, the total quantity of cement production and cement imports fell marginally by 0.8% last year, from 7.2 million metric tonnes (MT) in 2020 to 7.1 million MT in 2021.

In mid-January 2022, the president of the Chamber of Construction Industry of Sri Lanka (CCI) reported that a majority of construction projects - both residential and commercial - have come to a standstill over the past two weeks, due to cement shortages and the increasing price of cement.

The Sri Lankan construction industry is, however, expected to register an annual average growth of 5.5% from 2023 to 2026, supported by investments in transport, housing, and renewable energy projects, coupled with government policies to promote manufacturing and exports. Sri Lanka's Board of Investment (BoI) is focusing on investments in priority sectors by implementing a new strategy under the Reimagining FDI in Sri Lanka policy.

This includes the development of special economic zones (SEZ), with pharmaceuticals emerging as a particularly strong focus area. In mid-April 2022, the BoI reported that the country had received 33 investment proposals worth LKR284.7 billion ($1.4 billion) in the first quarter of this year.

Forecast-period growth in the Sri Lankan construction industry will also be supported by investments as part of the government's Vistas of Prosperity and Splendour plan (2020-25). Some of the construction-related initiatives outlined in the plan include reducing the time taken for approval of any building to a maximum of three weeks, establishing of a system through which all required permits can be obtained, and setting up an advisory committee to help construction firms obtain the required consultancy assistance, among others.

Scope

• Historical (2017-2021) and forecast (2022-2026) 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

Key Topics Covered:

1. Construction Outlook

2. Construction Industry: At-a-Glance

3. Latest News and Developments

4. Project Analytics

5. Construction Market Data

6. Risk Profile

For more information about this report visit https://www.researchandmarkets.com/r/nk3ym4

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