Sri Lanka’s construction sector reported a contraction in September, reflecting a slowdown in the activities, influenced by the election-related disruptions, the data from the Purchasing Managers’ Index (PMI) showed on Monday.

The Construction PMI recorded a Total Activity Index of 48.6 in September, falling below the neutral threshold of 50.0, that separates expansion from contraction. 

A reading below 50.0 indicates a decrease in activity compared to the previous month, marking a moderation within the sector.

The slowdown, attributed by the survey respondents to the increased election-related disturbances, dampened the overall construction operations, though there was an increase in New Orders, as projects began to gain traction in certain areas. 

Market competition remained intense, challenging the financial health of the construction firms, even as some foreign-funded and local projects resumed the availability for tenders.

Employment levels and the Quantity of Purchases both saw declines, with the respondents citing reduced operational activity. Suppliers’ Delivery Time remained extended in September, indicating the ongoing supply chain constraints.