Construction industry in severe crisis due to rising material prices: Construction Association

By Mangala Pavithrani

Colombo, March 25 (Daily Mirror) -The construction industry is facing a severe crisis due to the rapid increase in the prices of construction-related materials, Chairman of the Sri Lanka Construction Association (SLCA) Susantha Liyanarachchi said.

Speaking to the Daily Mirror, Liyanarachchi said the price of a ton of steel has increased by Rs. 18,000, while metal that previously cost Rs. 8,600 has now risen to around Rs. 11,000 including transport costs. He also warned that the price of a cube of sand, currently at about Rs. 37,500, could increase to nearly Rs. 46,000 in the near future.

He said that although rising fuel prices have contributed to the increase in material costs, the lack of government intervention to regulate prices poses a serious risk to the industry. He stressed that the collapse of the construction sector, which provides employment and income for a large number of people, could have a significant impact on Sri Lanka’s Gross Domestic Product (GDP).

Liyanarachchi further claimed that the recent 36 percent increase in fuel prices in Sri Lanka was not solely due to the ongoing conflict in the Middle East, but was also linked to losses incurred from the importation of low-quality coal.

Comparing global trends, he said Sri Lanka had recorded the highest fuel price increase at 36 percent, while other countries saw more moderate rises. According to him, fuel prices increased by about 2 percent in India, 28 percent in Canada, 24 percent in Pakistan, 22 percent in Singapore, 13 percent in the United States, and 12 percent in New Zealand, while Turkey recorded around a 10 percent increase despite being affected by regional conflicts.

“Only Sri Lanka experienced a significant fuel price hike, largely due to issues related to coal,” Liyanarachchi said.