Dublin, Oct. 03, 2023 (GLOBE NEWSWIRE) -- The "Sri Lanka Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027" report has been added to ResearchAndMarkets.com's offering.
The construction industry in Sri Lanka is expected to contract by 14.9% in real terms this year, down from the previous estimate of a 7.9% decline, owing to the ongoing economic and political crisis, a steep currency depreciation and rising inflation. According to the latest report released by the Asian Development bank (ADB) in April 2023, the domestic currency depreciated by 44.8% against US dollar in 2022.
In January 2023, the government announced that it will cut its recurrent budget expenditure by 6% in 2023 in a bid to tackle the financial crisis and secure IMF financial support. Moreover, the cabinet approved a proposal to delay some public employees' salaries to manage public finances. These are all expected to weigh on both economic and construction industry growth in the coming quarters.
Further weighing on construction activity is the suspension of major infrastructure projects due to financial issues, owing to an increase in foreign debt and decreasing tax revenues. According to World Bank, as of December 2022, Sri Lanka has an external debt burden of around LKR16.7 trillion ($52 billion). Of that, 40% is owed to private creditors, including financial institutions, while the rest is owed to bilateral creditors, of which China, Japan and India are the largest.
Despite near-term challenges, the medium to long term growth prospects of the Sri Lankan construction industry are expected to be positive, assuming an improvement in economic stability and a resumption of investment in transport, housing, and renewable energy projects, and government policies to promote manufacturing and exports.
The Sri Lankan construction industry is expected to register an average annual growth of 5.6% from 2024 to 2027, picking up from the low base in 2022 and 2023. In January 2023, India's state-owned railway company Indian Railway Construction International (IRCON) launched a LKR28.9 billion ($90 million) program for the upgradation of the railway track in Jaffna.
Growth over the forecast period will also be supported by a bailout loan aimed at helping the country overcome its financial crisis. In March 2023, the International Monetary Fund (IMF) approved a LKR962.4 billion ($3 billion) bailout for Sri Lanka for a period of seven years, to support a recovery from its worst financial crisis.
Scope
- Historical (2018-2022) and forecast (2023-2027) 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 our 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 business strategies using the publisher's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Latest news and developments
4 Project analytics
5 Construction Market Data
6 Risk Profile
7 Appendix
For more information about this report visit https://www.researchandmarkets.com/r/virj8y
Source: GlobalData
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