Sri Lanka Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2024-2028

Sri Lanka Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2024-2028

Summary

GlobalData’s Construction in Sri Lanka - Country Briefing H1 2024 report provides detailed market analysis, information, and insights into Sri Lanka’s construction industry, including-

• Sri Lanka’s 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 Sri Lanka’s construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

GlobalData expects the construction industry in Sri Lanka to record real growth of 6.2% in 2024, predominantly due to low base effects following the annual decline of 21.8% recorded in 2023. In January 2024, the Sri Lanka Urban Development Authority (UDA) announced it plans to finalize the construction of 22 mixed development, residential, Information Technology (IT), and tourism projects this year. In April 2024, the government also announced it plans to attract over LKR1.5 trillion ($4 billion) in foreign investment in 2024. In December 2023, the government approved the 2024 Budget. As part of Budget 2024, the government approved a total expenditure of LKR7 trillion ($18.5 billion), an increase of 32.8% compared to the expenditure of LKR5.3 trillion ($14 billion) in 2023. Of the total, LKR410 billion ($1.09 billion) will be allocated to Ministry of Health, LKR404 billion ($1.07 billion) to Ministry of Transport and Highways, and LKR237 billion ($627.5 million) to Ministry of Education. The 2024 Budget is aimed at increasing state revenue to 13.3% of GDP and reducing public debt to 108.5% of GDP.

Over the remainder of the forecast period, the construction industry is expected to register an average real annual growth rate of 6% from 2025 to 2028, supported by public and private investment in energy, and oil and gas projects. In March 2024, the country announced it plans to seek LKR4.3 trillion ($11.3 billion) investments over the next eight years to achieve its renewable energy goals by 2030. The country aims to generate 70% of its electricity from renewable sources by 2030, of which 3,805MW will be from solar power and 1,475MW from wind power, and establish Battery Energy Storage System’s (BESS) with 1,100MW of capacity, and Pumped Storage Plants (PMP) with 700MW of capacity by 2030.

Scope

This report provides a comprehensive analysis of the construction industry in Sri Lanka. It provides-

• Historical (2019-2023) and forecast (2024-2028) 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 GlobalData's 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 GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.