Sri Lanka’s construction industry has suffered a severe setback following the suspension of construction projects worth USD 5,465 million, Chairman of the Sri Lanka Construction Association, Susantha Liyanarachchi, said.
He said that several key projects in the fields of irrigation, health, education, provincial councils, and estate schools have been halted since September 2022, mainly due to the intervention of foreign companies.
“The suspension of these projects has caused great injustice to businessmen engaged in the construction industry. We request His Excellency the President to discuss and restart these signed projects,” Liyanarachchi said. “I believe that if these projects are resumed, the unemployment rate, which stands at around 17%, can be reduced significantly.”
He warned that if the projects are not resumed soon, there is a risk that loans, overdraft facilities, and vehicles obtained by those in the construction sector could be forfeited.
“Due to the suspension of these projects, many services that the country and the people depend on have been disrupted,” he added.
Liyanarachchi said that projects funded through foreign aid are essential for national development and must be implemented within a transparent public financial management system.
“Last year, Rs. 500 billion was allocated in the budget, but to date, not even Rs. 200 billion has been utilised,” he alleged, calling for the upcoming budget to include strong measures to revive and strengthen Sri Lanka’s construction industry.
