Cable industry’s highs to spur construction surge – analysts
View(s):The government decision to resume work on many of the suspended projects and launch a few new large-scale developments in 2016 will boost demand for the cable industry, industry analysts said. Growth in housing construction due to rapid investment worth US$ 1.8 billion has been signed during the period January to June this year, covering a wide range of sectors such as manufacturing, construction, mixed developments hotels and few other areas, they said.
Almost 30 per cent (US$531 million) of these investments are in apartment complexes. These diverse projects include the development of the transport system and roadways, energy and water resources, construction of urban dwellings and cities and similar projects aimed at giving the region a new identity. Last year saw a boom owing to certain populist government initiatives from state sector salary hikes, oil price slashes and reducing certain essential food items, analysts say.
They said that the low interest rate regime and the declining prices of copper, aluminum and plastics globally added to demand in the cable industry. These helped the local cable manufacturing companies to see their margins rise. Of the listed cable manufacturing companies in Sri Lanka, ACL Cables PLC and Kelani Cables PLC hold 70 per cent market share.