Construction sector to yield over Rs. 3,800b to national GDP in 2011

by Lalin Fernandopulle

Sri Lanka's construction sector will contribute Rs. 3,860 billion to the national GDP in 2011 against the current Rs. 2,325 billion. The overall contribution will increase to 12 percent from the present 7.2 percent, Co-Chair of the Construction Cluster of the National Council for Economic Development (NCED), D.D. Wijemanne said.

Secretary to the Ministry of Housing and Construction, Ms. S.M. Karunaratne said the construction sector could achieve this target since construction companies are growing in capacity, delivery and performance.

Local construction companies are able to compete with foreign companies.

If we help them to build their capacities by giving them concessions, bank loans and other facilities they will perform better as in other countries.

We should take a cue from S.Korea which has developed its roads and highways expeditiously. Roads and other infrastructure developments are the key factors that have accelerated growth in the country to be on par among other developed countries, she said.

Sri Lanka has missed opportunities for growth. We have been dragging our feet on many infrastructure development projects for too long. What is required is a national policy to expedite developmental activities for the welfare of the people. Stakeholders should realise the enormous potential of the construction sector to be a vibrant contributor to the national economy.

The government should recognise the potential of the construction sector and assist construction personnel to improve their skills to achieve professionalism in their career.

The Academy for Advanced Construction Training will provide the training and upgrade the standard of the industry. The construction sector should be given a fair share to contribute to the economy, Ms. Karunaratne said.

Any government will come up with an ambitious plan with regard to the construction sector because its development plan is translated into numbers through the production, construction, manufacturing and service sectors.

The construction sector should play a leading role in building infrastructure facilities such as roads, highways, irrigation systems, ports and built up areas such as condominium amenities.

NCED Executive Director, Rohantha Athukorala said the Academy for Advanced Construction Training, expediting the process of obtaining approval for projects from government institutions, construction of housing units for low income families under the Jana Sevena and Daya Sevena schemes are some of the Budgetary proposals forwarded by the construction cluster of the NCED.

The cluster also highlighted issues such as the shortage of construction personnel, delay in infrastructure development, negligence of large global consultancy services by local companies and local contractors facing unfair competition in the domestic market.

A country's economic growth is visible when its landscape changes. Today Singapore is a model to many countries that have not developed their construction sector.

With the achievement of Rs.3,860 billion in 2011 the vision for a viable construction sector will come true, Athukorala said.

CEO and Secretary General of the Chamber of Construction Industry of Sri Lanka (CCISL), Dakshitha Thalagodapitiya said the construction sector targets over two million employment opportunities in 2011 from the present 1.058 million. Approximately 458,000 people are directly employed in the sector while 600,000 are indirectly employed.