Construction Chamber to facilitate settlement of Government debts
 

by Ramani Kangaraarachchi

The Chamber of Construction Industry (CCI) Sri Lanka has established a separate cell to facilitate early settlement of Government debts by appropriate interventions. It is in the process of carrying out a comprehensive survey to assess the cumulative effect of State sector dues to the construction industry.

The Chamber Secretariat has requested all business entities who have to recover debts from the Government, state agencies and para-statal organisations to notify them immediately about their dues in order to intervene for early settlement.

"The prompt settlement of dues for domestic construction work by the State sector is imperative if the industry is to enhance its capacities and competitiveness" CEO of the Chamber Dakshitha Talgodapitiya said. He said that the Chamber has identified the delays in settlement of dues by the state to the members of the domestic construction industry as the major impediment to the growth of the Construction Industry in Sri Lanka.

Talgodapitiya regretted that the State sector debts, which contractors have to carry over a long period of time have in fact eroded the profitability, working capital base and investment potential at a time the domestic construction industry has a vital role to play in the reconstruction and rehabilitation efforts of the tsunami affected areas and also in other national development endeavors.

He stressed that the attitude displayed by public officers is a matter for concern and insisted that the debts from the government not only to the construction contractors but also to architectural, engineering consultants in practice as well as to manufacturers and suppliers of construction inputs, should be settled within the contractual period or in terms of the contract.