Slow down in building materials supplies
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
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.