The most significant setback in Sri Lanka’s national construction development in the country is funding, according to Dr Rohan Karunaratne, Chairman, Ceylon Institute of Builders (CIOB).
Speaking at a press conference in Colombo this week to launch ‘Construction Expo 2012’, he said that even though the construction turnover in the country is in the range of Rs 500 billion, between 20 to 25% of this chunk is handled by foreign companies.
However he said that some constraints on the local construction industry would ease because, as a result of long negotiations with the government, the authorities have agreed to share about 30 to 40% of the projects with the local constructors. He said that now local banks also have started funding government projects.
R.W.P. Dayawansa, Assistant General Manager, Personal Financial Services, Hatton National Bank said that local banks now have access to borrow from overseas at a lesser rate of interest than that of local funds and this enables them to support local industry and they are now pumping funds for the development of construction industry as well as the infrastructure. He said that their bank has apportioned Rs 50 million for the development of construction industry.
The Construction Expo 2012 is scheduled for June 29-July 1 at the BMICH. It is jointly organized by CIOB and Lanka Exhibition and Conference Services (LECS) and would become a meeting place of all the major players in the construction industry both locally and internationally.
There would be an all inclusive Indian pavilion that would have the participation of the key players in the construction industry from Mumbai, Chennai, New Delhi, Bangalore, Kolkata and Gujarat. Participation from other countries like Japan, Singapore, China and Italy are also expected.