While the construction sector in the country has expanded “significantly” over the years, the shortage of cement and the import of low quality cement might threaten its growth, according to officials in the construction industry.
General Chamber of Construction Industry chairman Dakshitha Talgodapitiya said inferior quality cement has been imported during the recent past.
“Allowing sub-quality cement to be imported will have consequences and ill-effects at a time the construction industry has gathered momentum and is expected to record a double digit growth level,” he said.
The construction sector in the country expanded by 9.3 per cent in value-added terms in 2010 when compared to a lower growth of 5.6 per cent in 2009, Mr. Talgodapitiya said. He also said the increased activity in construction was depicted by the growth in domestic production of building materials by 12 per cent in 2010.
Commenting on the impact of the cement shortage on the construction industry, MAGA Engineering Limited chairman M.G. Kularatne said, “Up to seven major projects in our company were held up. This weekend things should improve.”
He said cement usually used for brick work and plastering was not available while cheap cement was being imported from various countries. Sinha Cement Managing Director Colin Nelson said there was a drop in the supply. “At this time of the year, the demand is usually high,” he said.
Supporting his statement, Housing Ministry Secretary Gotabhaya Jayaratna said enough cement was not available to meet the demands of contractors.
A senior official from a cement company said, “We are trying hard to retain market shares and distribution networks. We have cut short our cement issuing times. This has been happening for the past one month.”
He explained the shortage was due to the high internal demand in India, Pakistan, Malaysia and Indonesia, which are the major suppliers to Sri Lanka. He added that the monsoon weather conditions in those countries had also affected the supply. The cement from Pakistan in recent months had not passed the specifications required by the Sri Lanka Standards Institution (SLSI), adding to the shortage, he said.
The official said that with the increase in the internal demand in those countries, the export prices had also shot up.
Cement prices here were increased by Rs. 25 two weeks ago to Rs. 750 a bag. However, Consumer Affairs Authority Chairman Rumy Marzook said the shortage had been propped up artificially to increase the maximum retail price for cement.
“Our maximum retail price is Rs. 750 and our team is investigating and prosecuting those who sell cement for more than Rs. 750. We are also checking whether SLSI standards have been met,” he said.
Commenting on the market price of cement, Mr. Talgodapitiya said cement prices had been more or less constant when compared to the increased cost of other building materials during the past two years. “Cement is no exception to market demand,” he added. He said there are “ambitious urban renewal preparations” to build 70,000 housing units to resettle persons living in under-served settlements, construction of outer-circular roads, post-conflict reconstruction programmes and other infrastructure development activities.
“Construction industry capacity will have to be expanded both in terms of materials and manpower requirements, Mr, Talgodapitiya explained.
Statutory agencies like SLSI and other industries should also be vigilant over “dumping of sub-standard and spurious construction materials” in the country, he added. “What is most important to consumers and retail buyers is not only bulk quantity but ensuring that cement conforming to Sri Lankan standards is only allowed to enter the market,” he said. |
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