News
Builders to turn cultivators as construction industry collapses
The construction industry, now mostly at a standstill, is to turn to cultivating crops in abandoned lands.
Already weighed down by the dollar crisis in the country the government’s decision to halt all state-sponsored building projects has hit the industry further.
A circular in this regard, directing that any ongoing development projects or projects in the pipeline be stalled, was issued to all ministries in early May.
Projects came to a sudden halt with partially completed roads and school projects being abandoned.
From the beginning of the year the industry was falling apart because of the increase in prices of cement, steel and building materials brought about by the depreciation of the rupee against the US dollar.
Construction companies involved in private projects including homes and condominiums have stopped undertaking new projects. Only ongoing projects are going ahead to honour their commitment to customers, the Sunday Times learns.
The Construction Industry Development Authority (CIDA ), the body that governs construction projects, said many contractors have failed to register their businesses this year.
CIDA issues certificates to mega- and medium-scale businesses upgrading their standards on past performances.
“Many have dropped out of the industry and even big players are only completing ongoing projects,” Director Savindra Amarasekera said.
Around 3 million minor workers including masons, carpenters and other skilled labourers have lost their jobs.
The National Construction Association of Sri Lanka (NCASL) has decided to use this workforce to cultivate abandoned state land.
A proposal to this effect has been put forward by the association’s president Susantha Liyanarchchi to Prime minister Ranil Wickremesinghe who had met the members on Poson Poya, June 14.
Mr. Liyanarchchi said the discussions were fruitful and the Prime Minister had promised to grant around 3000 to 5000 acres in Moneragala, Anuradhapura and close to Sinharaja forest for cultivation.
However, Chamber of Construction former president Nissanka Wijeratne was sceptical that the plan would be successful. He said the country was self sufficient in food until 2020 and it was the failure to provide chemical fertiliser for the crops that had resulted in a food shortage. He pointed out that this season too the government had failed to supply the necessary fertiliser for the crops and the farmers were still waiting.
“In this backdrop how can we get into farming? Also we need to have the expertise,” Colonel Wijeratne said.
He said construction workers earned well with a minor worker earning up to Rs 60,000 a month. “Will farming bring in such incomes?” he questioned.
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