An attempt is being made to force the only construction industry regulating body, CIDA to vacate the current office premises at Sausiripaya Building at Wijerama Mawatha, Colombo 7.
This is based on an ending of a 30 year lease agreement with the Tower Hall Theatre Foundation. Currently both organisations are functioning at the building sharing adequate space for each other's needs.
The Construction Industry Development Authority (CIDA) is the apex regulatory organisation in construction industry regulating and standardising the industry with capacity building of the industry stakeholders attributed as a key function.
Rewarding and recognition of quality outputs of construction, preparation of standard documentation for contract administration and project management practices, monitoring and registering the contractors as per the requirement of NPA, are some functions while the Construction Industry Development Act (CID Act) No 33 of 2014 entrusted more functions to streamline the sector.
Nevertheless the Construction Industry contributes in about 10% to the Gross Domestic Production of Sri Lanka, and the contribution of the Construction Industry to the Gross Fixed Capital Formation of the Country is about 60%.
Established in 1981, the Construction Industry Training Project (CITP) converted into Institute for Construction Training & Development (ICTAD) in 1986, which undertook the central registration of Construction Contractors in addition to its training of craftsmen and technicians for the industry. It was during that era World Bank granted funds to construct the Savsiripaya building to house the ICTAD, on a land belonged to the Tower Hall Theatre Foundation (THTF), intended by then Minister of Housing who was also the then Prime Minister Ranasinghe Premadasa.
The location selected by the then Prime Minister, was in proximity of all professional bodies of the construction industry and many other training institutions. The Former Prime Minister intended both parties to function in the ‘Savsiripaya’ premises by directing to sign a long term Lease Agreement (30 years) with provisions to extent the period. In the Lease Agreement, parties agreed to have structures in the building to perform the functions of both parties, as desired by former Prime Minister (Auditorium, Seminar Rooms, Library and Conference Room for CITP and Admin Office and Music Hall for THTF).
ICTAD to CIDA conversion came into effect in 2014, with the enactment of the CID Act, and CIDA is currently paying all Rates, Taxes and payments for all consumptions such as water electricity etc, and allows THTF the use of all the facilities such as Auditorium, free of charge, in addition to the attending to all the repairs, renovations and maintenance to the ‘Savsiripaya’ building, from the inception at its cost.
CIDA has given sufficient notice to THTF three months prior to the expiration of the Lease Agreement, of its intension to extend the Lease Agreement, as per the provisions of the Lease Agreement, which fell into the deaf ears of the present authority. The ‘Savsiripaya’ premises, which is the Head Office of CIDA is not a mere administrative office, but constructed specially to carry out functions for the development of the construction industry. CIDA Head Office cannot be shifted, as alleged by THTF, to Construction Equipment Training Center (CETRAC) or Center for Housing, Planning and Building (CHPB), both at Pelawatta, Battaramulla , since these training centers are specifically designed and equipped to carry out specific functions for the uplifting of construction industry.
At this juncture the Government should take a favourable initiative to safeguard the only regulating authority of the Construction Industry, without jeopardising the interests of both THTF and CIDA, and allow it to continue to function in the ‘Savsiripaya’ premises by extending the Lease Agreement by another 30 years. There are around 5000 CIDA registered contractors in the country at present. The contractors find it convenient to come to Savsiripaya for registration purposes since CIDA's strategic location could be reached within about 10 minutes from the Colombo city. CIDA's location in close proximity of all professional bodies of the construction industry is also advantageous.
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