Sri Lanka construction sector: Setting sights on a residential thrust
Following a hiatus of two years, construction activity is set to rebound in 2020 with several elements lining up to spark growth. While there has been much talk around the rebound, we admit it does not mean it is “all good” for the sector in 2020. Since our last sector update in November 2017 where we anticipated the slowdown in the sector, activity levels slackened in the two years that followed causing profitability to decline, a sector-wide liquidity crunch was created, and sector borrowings have risen to the highest levels seen in the decade. The timing of the expansion was justifiable as the momentum looked likely to continue for the rest of the decade.