Slow down in building materials supplies

Anjana SAMARASINGHE

DECLINE: The building materials supplying industry has shown a slow growth comparing with the last few years.

President of the Ceylon Hardware Merchants' Association S.T.C Arulananthan told 'Daily News' that there is a boom in the construction sector due to large condominium projects.

"But we cater to the middle income level people and purchasing power of this segment has been declined," she said.

There was a huge growth in the industry with the tsunami reconstruction but it has declined by 30% to 40%. Nearly 90 percent of the building materials had been imported and the importation prices have shot up due to the dollar increase.

Senior official of a state-owned building material supplying institute said that there was huge demand for the building materials due to the tsunami reconstruction which showed nearly 50 percent growth in the industry.

Generally this sector has only a 10 percent annual growth rate.

Due to the bulk consumption of building materials soon after tsunami a shortage in building materials such as sand, metal and timber emerged.

At present one cube of sand price ranges from Rs. 5,500 to Rs. 6,000 due to the shortage. Capitalising from the difficult situation some importers were tempted to fix exorbitant prices for building materials thus gaining massive profits.