Sri Lanka’s construction industry faces sharp GDP decline

13 November 2025 11:48 am Views - {{hitsCtrl.values.hits}} 4 Bookmark

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By Mangala Pavithrani

Colombo, Nov. 13 (Daily Mirror) - The contribution of Sri Lanka’s construction industry to the national Gross Domestic Product (GDP), which once stood at 9%, has now fallen to between 3.5% and 6%, Sri Lanka Construction Association Chairman Susantha Liyanarachchi said.

Speaking to the Daily Mirror, Liyanarachchi said that small and medium-scale entrepreneurs have lost most of their construction opportunities, with more than 40% of the industry remaining unregistered with the Construction Industry Development Authority (CIDA).

“This year’s budget is clearly disadvantageous for the construction industry,” he said, adding that a once-efficient sector has now become severely dysfunctional, with no relief provided for construction professionals or small and medium-scale workers.

Liyanarachchi also highlighted that funds allocated for capital expenditure should be released in the same manner as for recurrent expenditure to ensure effective implementation.

He further pointed out that although money was allocated for the construction sector in last year’s budget, only 47% of it was utilized, resulting in stagnation and further decline in the industry.

“The government deliberately did not use 53% of the funds allocated last year for the construction industry,” Liyanarachchi alleged.

Comments - 4

Lakmal Kahawela Thursday, 13 November 2025 12:08 PM

As the Chairman of the Sri Lanka Construction Association, you should have pointed out this to the government during the budget allocated year.

0 2

Zarook Friday, 14 November 2025 05:12 AM

Don't know the difference between businessman and entrepreneur. Many are crooks example Ceylon Chamber of Conmen. Construction workers are worse off than tea pluckers. No minimum wage, EPF etc.

0 1

Mizaru Thursday, 13 November 2025 12:26 PM

They made good money during the overpriced apartment boom. Now asking for concessions from the government. For what ?

0 3

johan Thursday, 13 November 2025 01:02 PM

In Sri Lanka the construction cost is very high compared to the other countries. This is due to the double the price of the materials cost.The Govt. must look in to the possibilities of reducing the price cement, steel and other important materials.

0 3

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