Pension scheme urged for construction sector workers
View(s):Sri Lanka’s Chamber of Construction Industry (CCI) is urging the Government to implement a pension scheme for the industry.
The request was made by CCI President Surath Wickramasinghe at the May 29th inauguration of the ‘Build SL 2015 International Exhibition’ held at the BMICH in the presence of President Maithripala Sirisena and Minister Rauff Hakeem.
He said a shortage of skills is one of the reasons why the cost of construction is high. “This has been caused by skilled personnel leaving Sri Lanka for better prospects overseas. This is now become a major problem facing the construction industry. Unfortunately, the share of young school leavers, joining the industry, is marginal, despite the opportunities in the industry being much more remunerative and challenging, working with new technology. Several Government agencies are now training the young, but the demand is much more. The variety of jobs on offer are immense and the industry is looking for trainees from all parts of Sri Lanka , including the North and East for on the job training opportunities as fabricators, welders, crane operators, electricians, plumbers, masons, glaziers, refrigeration and air conditioning technicians, etc. We like to request the Government to assist us regarding this matter and also to introduce a Pension Scheme to ensure security for long term employment in the informal sector of the industry,” he said.
Here are extracts of his presentation:
“We have witnessed in particular in the last five years, a huge transformation of not only Colombo but also several other cities in different parts of Sri Lanka. The construction industry sector has been growing at the rate of 22 per cent and contributes 7 per cent to the GDP. Unfortunately, these have now slightly declined, hence it is necessary to re – build the confidence among the stakeholders of the industry, by ensuring a continuity of work.
I have noticed that you (President) has been pointing out, various areas, where the country needs to “fast track” development. You will also agree, that today one of the most crucial problems facing major cities is the traffic congestion and consequent pollution. The situation will get worse as we go on. Therefore, we believe that there is an urgency that the Government, implements the proposed Bus Rapid Transit (BRT) System recommended in the Transport Ministries Policy Statement. Its implementation could be a Public Private Partnership Venture (PPP).
The Inland Revenue Act, has not extended the incentive package given to the Board of Investment as from 31 March 2015. This is unfortunate since many of the investors/developers are holding on to their projects until this matter is resolved. This is causing a lot of damage to the enthusiasm of the developers. In the past, the power to provide incentives were with the BOI, within its own regulations. However, these powers have now been withdrawn. There are concerns among the investors and developers, that the construction cost in Sri Lanka is higher than in some of the other Asian countries. If the cost is to be reduced, the negative list issued by the Treasury to the BOI, with a view to protecting local manufacturers which is now in force, has to be revisited.
However, the situation today is that some of the major items such as Steel Bars, Ceramic Ware, Aluminium Extrusions, and Carpets, etc are cheaper in the region. In this context, if the cess could be removed or reduced, for such materials only, then the building costs can proportionately be reduced, making our industry more competitive.
Now that high end tourism, Port City and similar development projects are happening, it is the appropriate time to commence on outdoor sports and a recreation infrastructure to be competitive with other Asian countries. To give one example, in Singapore, 30 golf courses including 13 international courses, and around 18 major Multi-Sports complexes are available. Sri Lanka could at least promote seven golf courses and facilities for Multi-Sports including indoor stadiums, within the Western Province. This concept is possible since land is available bordering the Outer Circular and other Expressways. These projects are for dual purpose to be used by schools and the public or exclusively private.
Regarding procurement, one of the major constraints facing the industry, is due to not following the published Procurement Procedure by the executing Agencies. This is applicable not only for the road projects, but, also for other contracts. For example, the delay of the Northern Expressway under construction is reported to be due to not following a proper and appropriate procedure by the relevant agency. The CCI is in a position to advise the National Procurement Agency regarding an appropriate Procurement Policy, since our membership includes high calibre professionals in all sectors relating to the industry.”