Facilitating infrastructure development:

Foreign investment essential

Sanjeevi JAYASURIYA

There is a need for a rapid infrastructure development and this cannot be met entirely by private sector investment.

It is essential to obtain foreign investment, commercial borrowings and a host of other funding mechanisms to facilitate rapid infrastructure development, Chamber of Construction Industry Sri Lanka Chief Executive Officer/ Secretary General Dakshitha Thalgodapitiya told Daily News Business.

"The Chamber of Construction Industry continuously advocates for deployment of local construction consultants and contractors.

However, we have no option, but to consider favourably proposals for infrastructure development that have been provided for funding by foreign companies, he said.

It is necessary to seek collaboration with such foreign contractors and work as sub contractors which will facilitate local contractors being provided with work and also the transfer of technology.

The Chamber reached an understanding with foreign construction chambers, especially China Constructors Association (CHINCA).

The International Infrastructure Investment Forum initiated by CHINCA representatives of the construction industries from Indonesia, Korea, Romenia, Russia, Sri Lanka and China promoted formulation of a joint action plan for co-operation on international infrastructure contractors.

In an era where globalization has bought about cross broader cooperation, countries such as Sri Lanka will benefit by this kind of arrangement, not only in infrastructure but also through transfer of technology, he said.

"The Government is embarking on a highly ambitious housing program to fill the gap of 650,000 units which is needed to re-settle the slum dwellers.

This is an affordable housing program. We need to learn from the experiences gained by some Asian countries in terms of keeping the construction cost down to make it affordable, he said.

Sri Lanka should focus on modern methods as in the case of most of the countries moving away from conventional construction to meet the current requirements.

With political stability the country is ideally placed to attract foreign direct investment and modern technology, he said.

"The Government is committed to facilitate regional development and take development outside the Western Province.

The regional construction industries are a forerunner as the construction being the driver of the economic development.

The benefits of the development must accrue to people in the area and the regional enterprises must grow."

"We need to facilitate the companies in the regions to build linkages with overseas companies in capacity building process.

It is important to have an integrated approach for the development of the construction industry," Thalgodapitiya said.