Sri lanka Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in sri lanka, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
Select Country Guide
Construction
Last published date:

Overview

Construction activities suffered a severe setback due to supply and demand contraction in the wake of the economic crisis.  Shortages of raw material and fuel together with soaring input cost, lack of supplier credit and overdue payments on completed government projects was key to the subdued growth in the sector.

The Sri Lankan construction industry, which is one of the biggest GDP contributors and employment generators in the country, faced significant challenges in 2022 with availability of cement recording a steep decline of 35 percent over the previous year. Due to rising raw material costs and a fuel and energy shortage, there was considerable job losses and a sharp drop in construction projects.

According to recent Central Bank reports, the sentiment amongst the firms towards the short to medium term is positive due to the expected recovery in the economy, the decrease in interest rates and material costs, and current negotiations on the recommencement of suspended government- funded projects.

Leading Sub-Sectors

  • Equipment sales
  • Engineering, procurement, and construction
  • Direct contracting

Opportunities

U.S. companies have significant opportunities to sell a range of equipment and technology, ranging from earth-moving equipment and building appliances to heating, ventilation, and air conditioning (HVAC) systems.  Buyers are often price sensitive, but high-end developments have more leeway to purchase high quality products and services. 

Sri Lankan developers also frequently team up with U.S. engineering and design firms, especially for high-end office buildings, luxury apartments, or resorts. 

Resources

  • Urban Development Authority (UDA)
  • Sri Lanka Ports Authority (SLPA)
  • Board of Investment of Sri Lanka (BOI)

×

Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

Privacy Program | Information Quality Guidelines | Accessibility