More than 500,000 construction industry workers were laid off and 70% of the industry is on hold, Ceylon Institute of Builders (CIOB) President Rohan Karunaratne says.
“The government is our biggest client. So they usually used to be. As of today our construction turnover has come down to 65% to 70 %.”
He said further that private developers are reluctant to start their projects because of the high material price, shortage of material and fluctuating dollar price.
“As per the discussion I had with the World Bank, 65 % of the World Bank budget has been stopped as of now.”
“Their funded projects are being stopped. Private parties are not coming in and the direct investors are very minimal now. Therefore, the industry is in great trouble.”
Speaking on dues amounting to Rs 209 billion to be paid by the government to contractors, Karunaratne said out of Rs. 209 billion, the central bank announced Rs. 25 billion will be released to settle due amounts by end of this year.
Karunaratne also stated that plans are underway to prepare a roadmap for the Construction industry within the month of January.
“We intend to have discussions with the relevant authorities to explain how we can restart the industry in 2023. In this regard, a roadmap will be prepared for the industry for 2023 or maybe beyond,” Karunaratne stated.
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