Financial Times

Despite potential risks in the North and East, some leading construction companies remain undeterred and are gearing to implement projects.

“Waiting for peace will never get us there,” said Manilal Fernando, Chairman, Holcim (Lanka) Ltd adding that the company was willing to take the risk and start projects in the area regardless.

Companies such as Sierra Construction Ltd, have also gone ahead with projects in Trincomalee and Jaffna, over the last six months.

Speaking to The Sunday Times FT, Nimal Lokuge, CEO and Director, Sierra Construction Ltd said the company recruited workers in the area for its projects and that it hoped to carry on with construction tenders for new and upcoming ones, though progress was slow in recent times.

Whilst companies such as these are willing to brave the risks arising from the regions tension, others still opt to tread more carefully.

“We are not planning to take up new projects in these regions because of the current political situation. We are adopting a wait-and-see policy, but we are not entirely closed to new ideas, such as joint venture partnerships,” CEO of a major construction company said.

Suppliers of construction material like Lafarge Mahaweli Cement in the eastern areas of Monaragala, Ampara and Vavuniya seemed optimistic as R. Nithianandan, Supply Chain Manager for the firm said, “dealers are performing well and this has resulted in a sales increase; by about five percent per month over the last four months: where we cater mostly to Non Governmental Organisation (NGO) projects and day-to-day construction in these areas.”

Many Non Govermental Organisations (NGO), like Sewa Lanka Foundation, World Vision and the Agromart Foundation expressed similar sentiments, to continuing with their construction projects in these areas. “We have completed a combined project with Holcim (Lanka) Ltd. in Trincomalee,” said Nishantha Preethraj, Media co-ordinater of Sarvodaya, a local NGO, who added that they were looking forward to future projects as well. Meanwhile, industry sources said unless a war situation arose, industrial boom and sales growth which were positive over the last few months would not be affected by the current situation.