Financial Times

Lanka's construction industry needs help
A top construction industry expert has slammed the government for delays in payments to contractors and for too much reliance on foreign contractors and architects.

"Our situation is that the construction industry has no one to appeal to and to explain our grievances since there is no specific ministry responsible for this sector," lamented Surath Wickramasinghe, President of the Sri Lanka Chamber of Construction Industry.

The chamber chief, who has repeatedly raised this issue and urged the government to rely on local professionals rather than foreigners but has failed to meet any success, noted that all construction industry projects in countries like South Korea, Taiwan, China, Singapore, Malaysia, India and Pakistan are handled by their own consultants and contractors.

"Consequently, the consultants and contractors gain enormous experience and have the confidence to work on projects in their own country and thereafter venture overseas and obtain work in the Middle East and other countries. In addition to employing professionals and skilled labour from other countries the repatriation of their profits and income to the respective countries is a boost to their national economies. Sri Lanka should follow the same example in developing its own industry," he said.

He said the government continued to give a major part of its work to Public Sector Construction Agencies (PSCAs) at a time when donor agencies have excluded the pre-qualification of PSCAs from tendering for donor funded projects.

"At least if the government obtains competitive bids for the same work given to these agencies from their local counterparts in the private sector, then there is a level playing field. The government while claiming that the engine of growth is the private sector seems comfortable to give work to the PSCAs - even at a higher price."

He said government agencies owed large sums of money to private consultants and contractors forcing the later to resort to overdrafts from banks that accumulate interest.

Wickramesinghe said the local construction industry should handle local projects instead of relying on foreign consultants and contractors from Singapore and Malaysia as reported in the local media.

Creations gets ISO status, moves to new factory
Creations (Pvt) Ltd was recently awarded the ISO 9001-2000 certification from the Sri Lanka Standard Institute. The company is now in the final stages of relocating its Nugegoda factory to a new state-of-the-art, fully air conditioned facility at the Polgahawela export processing zone.

The Nugegoda factory will continue as the head office and the design centre while production will be at their factories in Meegoda or Polgahawela. The Nugegoda factory, which occupies two acres of land, will be restructured for a modern office and design centre while the balance land will be made available for a housing scheme, the company said in a statement.

Janaka Fernando has succeeded Lyn Fernando as the new Managing Director while the latter would continue as the Chairman. The new Marketing Director is Ms. Bimalka Fernando. The firm specializes in the manufacture of ladies and children's garments particularly costume garments and dressing up kits under prestigious brand names for retailers in both the EU and the USA.

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