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Construction activities in NE to boost industry:

Major development projects in the pipeline

There are major development projects in the pipeline - the majority in the road sector and the work related to the Uthuru Wasanthaya and Nagenahira Udanaya would have a positive impact on the construction industry.

These activities would help build a better future for the construction industry, said Head of Operations, Chamber of Construction Industries Sri Lanka, Ananda Weerasekara.


Construction workers at a site.

Construction activities in the North and the East will boost the industry. The grants by funding agencies such as JAICA and the ADB will help development projects in these areas and thereby create a demand for construction related activities, he said.

“We need to give an equal share in construction projects to the Northern and Eastern contractors. At least 40 percent of the work should be given to them to create a level playing field. We should encourage them to join the major players in joint ventures and this would help develop the construction industry”, he said.

Construction industry related material prices have increased over the years, but there has been no substantial increase in prices. Cement prices are stable at present. The scarcity in granite metal and sand is a drawback, he said.

Construction activities are going on apace in the sectors of highways and new projects. According to the contractors and consultants there are a few jobs in hand and construction activities are not distributed equally. The lack of adequate construction work and delays in payment are a setback in the industry, he said.

Over 400,000 direct and 600,000 indirect employment opportunities have been generated through the industry. Nearly 60 percent of the direct jobs are at stake due to insufficient work. Due to lack of work, the contractors are unable to pay the suppliers and manufacturers. In turn they are unable to sustain the business and this vicious circle affects the country’s economy, he said.

The demand for contractors in the Middle East too has decreased. This has resulted in unemployment. However, labour costs have not changed drastically over the years and remain unchanged at present due to low demand, he said.

There are no major activities in relation to construction work in Colombo. Work on many residential consortia has come to a halt due to various reasons. There should be a system for banks to come in as investors to overcome the problem of funding, he said.

There are around 3,600 contractors in Sri Lanka. The employment share of the industry is 6 percent of the total labour force. The downturn in the construction industry is a temporary situation and would ease in the near future, he said.

Policy makers should introduce structural changes and a legal framework to divide construction work equally. There should be a more transparent procurement process for the construction industry to move forward, he said.

At a glance

* Equal share in construction work in the North and the East necessary

* Over one million jobs generated

* Around 3,600 contractors in Sri Lanka

 

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