Sri Lanka’s construction sector, heavily dependent on aluminium, is hanging by the thread of uncertainty. Roughly 28,000 tonnes of aluminium is used in the construction sector of the nation. The two-week ceasefire in the Middle East conflict led to the reopening of the Strait of Hormuz, only to be closed soon after. With no domestic production of aluminium and full reliance on imports, the future of the Sri Lankan construction industry remains foggy.
According to the report of the Department of Census and Statistics, Sri Lanka, combining the GDP contributed by the construction sector throughout the four quarters to the Sri Lankan economy stood around LKR 963.94 billion (USD 3.8 billion), accounting for nearly 3 per cent of the national GDP of LKR 44.56 trillion (USD 141.2 billion).
The Department of Census and Statistics reported that as of Q3 2025, out of a population of 23.2 million citizens, the Sri Lankan construction sector has employed 8.1 million workers, which represents almost 35 per cent of the entire population.
On March 28, the Iranian missile and drone attacks hit the aluminium smelters of Aluminium Bahrain and Emirates Global Aluminium, disrupting the aluminium supply chain even further.
While Alba had already shut down three of its potlines linked to the blockade of the Strait of Hormuz trade corridor due to the ongoing Middle East conflict, the smelter damage has further curbed its aluminium shipment scenario, with an uncertain future of the smelter reopening until the resolution of the geopolitical tensions.