In a bid to reduce high construction costs in Sri Lanka, Ceylon Institute of Builders (CIOB) held a discussion with architects, engineers, contractors and material suppliers to discuss how to bring down this abnormal construction cost in par with neighbouring countries in the region.
Sri Lankan construction cost is significantly higher than that of India, Malaysia, Vietnam, Thailand, Bangladesh, Manila and other such neighbouring countries, which disrepute Sri Lanka as a developing nation. In the recent discussion held with President Ranil Wickremesinghe, at the time of handing over the Construction Industry Roadmap, the topic of construction cost in Sri Lanka too was discussed very seriously. It was identified that there is a huge cascading effect of high construction cost.
“For example, within given budget restraints restarting projects is difficult,” said President of CIOB, Dr. Rohan Karunaratne.
FDIs are also reluctant to come to Sri Lanka due to high construction cost while funded projects cannot be completed within allocated funds. House builders and commercial/apartment projects too have also been abandoned due to abnormally high construction costs. It was identified that even from the initial design stage, over-designing; imported materials used by some architects; unregulated and costly unusual designs, construction cost increases.
“For contractors the issues boil down to wastages, poor management and poor decision making. Such factors have led to a 24% increase in construction cost, which is clearly preventable by using LEAN methodologies and local materials,” said Prof. Chitra Weddikkara, Past president- Institute of Architects, Institute of Quantity Surveyors. Encouraging the manufacturing and utilisation of local materials is essential in this endeavour to reduce dangerous price hikes.
“To this extent it is also necessary to deal with the bribery, commission and harassment culture among some bureaucrats, which further inflames this problem. If this is seriously considered and dealt with and cost reduces by 24%, firstly we can compete with our neighbouring countries and secondly we can restart halted projects. It will also help to woo more FDI and also funded projects can resume. Also apartments and commercial projects too could re-commence and in short Sri Lankan development can continue.”
CIOB will soon be officially announcing new, competitive construction costs on par with our neighbouring countries, together with the stakeholders of the Sri Lankan Construction Industry.
