Home » Govt pays Rs. 200 Bn owing to construction contractors

Govt pays Rs. 200 Bn owing to construction contractors

by damith
July 2, 2024 1:20 am 0 comment
  • Outstanding amount due to Covid-19 and economic crisis
  • No late fee charged to small and medium constructors for registration
  • NVQ certification to 7,000 construction workers
  • ID cards for craftsmen with NVQ qualifications under 26 categories

Urban Development and Housing Minister Prasanna Ranatunga said yesterday that the Government has succeeded in settling an outstanding amount of Rs. 200 billion which could not be paid to construction contractors due to the Covid epidemic and the economic crisis that prevailed in the country.

He emphasised that steps have now been taken to pay the bills of several contractors which could not be paid due to various technical reasons.

The construction industry sector contributes 8 percent to 9 percent to the country’s Gross National Product. About 20 percent of the country’s population is involved in the construction industry.

As per the instructions of the President, five committees were set up to look into the necessary activities to uplift the construction industry which collapsed due to the Covid pandemic and economic crisis. The committees consisted of government officials, construction industry experts and contractors.

Around 50 proposals were presented to build the construction industry in Sri Lanka through these committees, and the Government focused on 14 areas that could be upgraded immediately. Minister Ranatunga further said that the facts have been submitted to the Cabinet of Ministers to create a new policy to promote the construction sector as well.

Additionally, registration for construction contractors has been initiated without late fees. In response to the National Construction Association’s request, small and medium constructors (C4-C9) who were unable to register before 2020 will also have the opportunity to re-register for a period of three years.

Accordingly, the Construction Industry Development Authority (CIDA) said that the late fees of three years of small and medium contractors (C4-C9) have also been waived. Because of this, any contractor has the opportunity to get registered with the CIDA without any hassle.

With the intervention of the CIDA, steps have been taken to provide NVQ certification to about 7,000 construction workers under the fields of mason, carpenter, plumber, and tiler within the last five years. The amount spent for this was Rs. 485 million.

The CIDA also said that the programme of providing ID cards for skilled craftsmen with NVQ qualifications under 26 craft categories in the construction industry is currently being implemented. So far about 300 ID cards have been issued.

The CIDA further stated that 1,386 construction machine operators have been trained by the Anuradhapura, Galkulama Construction Machinery Operators’ Training College, and 814 by the Battaramulla, Pelawatta Construction Machinery Training Centre within the last five years.

Irangika Range

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