Heat the olive oil in a large Dutch oven over medium-high heat. Add the lamb cubes and cook until browned on all sides, about 6 minutes. Remove the lamb and set it aside.
Add the chorizo slices to the same pot. Cook for 3 minutes until they release some fat and start to crisp.
Stir in the onion, garlic, and diced bell peppers. Cook for 5 minutes until the vegetables soften.
Sprinkle the smoked paprika over the mixture and stir for 30 seconds to toast the spice.
Return the lamb to the pot. Add the rinsed barley, beef broth, and diced tomatoes with their juice. Season with salt and pepper.
Bring the stew to a boil, then reduce the heat to low. Cover and simmer for 45 minutes, stirring once or twice, until the barley is tender and the lamb is soft.
Taste and adjust seasoning if needed. Ladle into bowls and top with chopped parsley before serving.