Construction sector on brink as 40% of firms become inactive -Sri Lanka Construction Association President

• Nearly 40 percent of businesses in Sri Lanka’s construction sector have become inactive due to continued changes in tax policies, the increase
• in VAT and the depreciation of the rupee

By Mangala Pavithrani  

About 40 percent of businesses in Sri Lanka’s construction sector have become inactive due to continued changes in tax policies, the increase in VAT and the depreciation of the rupee, President of Sri Lanka Construction Association Susantha Liyanaarachchi said.  

Speaking to the Daily Mirror Liyanaarachchi said that, the Government’s economic policies have placed a heavy burden on businesses and the public.  

He said that although the Governor of the Central Bank has highlighted the growth of foreign reserves, a significant portion of that increase was linked to the US$695 million received from the International Monetary Fund (IMF), and should not be viewed as genuine economic growth.  

Liyanaarachchi also alleged that fuel prices were increased despite expectations of relief measures under the IMF programme. He said countries such as Japan and India had provided direct subsidies to support local industries when global fuel prices declined, while Sri Lankan businesses continued to face rising production costs.