Sri Lanka, July 15 -- Sri Lanka's construction sector is emerging as one of the clearest beneficiaries of the country's economic recovery, with rising bank lending, stronger foreign investment and growing demand for building materials signalling a broader revival in investment activity after years of contraction.

Industry data shows credit to the construction sector expanded 18.8 percent in 2025 to a record Rs. 1.81 trillion, while foreign direct investment into housing, hotels and commercial buildings rose 55 percent to US$ 173 million. Building material imports also increased 9.7 percent to US$ 1.02 billion, reflecting a gradual return of development activity across the country.

Sri Lanka's recovery is increasingly being driven by in...