News
CB Governor: Constructions costs kept unconscionably hight
By Rathindra Kuruwita
The cost of construction in Sri Lanka had been high compared to other countries of the region even before the current crisis, and that was because certain industries had managed to limit or prevent imports without boosting productivity, Governor of the Central Bank of Sri Lanka, Dr. Nandalal Weerasinghe said yesterday, addressing a forum organised by the Ceylon Institute of Builders.
The price of raw materials- tiles, steel, cement, bathware, etc., were too high, he said. That was because some companies had managed to make the government discourage imports with higher taxes, he said.
“As a result, Sri Lankans are not paying market prices for material needed for construction. Everyone is paying extra to protect certain companies. Those in the construction industry have to pay higher prices to purchase the material they need, and the average Sri Lankan has to foot the bill finally. Even before the crisis, Sri Lankans paid a lot more than others, in the region, for housing, and now the numbers are astronomical,” he said.
Dr. Weerasinghe added that the economy must stabilize, and the wages have to rise for the average Sri Lankan to purchase a house.
“We will have to wait some time until the economy stabilizes, and income goes up. Then people will demand housing again, but this will take time. It will also take time for the government to invest in construction. The government needs to invest in construction and must build infrastructure, but this is not a priority right now. The government has been a big player in the construction industry for a long time and the industry leaped forward because of the government involvement. However, this can’t happen until we have fiscal stability and debt sustainability,” he said.
Dr. Weerasinghe said that the government would be able to stabilise the economy next year.
The Ministry of Industries and Entrepreneurship Development has recommended the establishment of Sri Lankan Standards, i.e. the import testing methodology for imported tires used for passenger cars and pneumatic tires for three-wheelers with the aim of ensuring a fair competitive environment for local
manufactures and ensuring consumer safety and security.
Taking into the said recommendations, “Import and Export (control regulations N0.08 of the 2026)” has been enacted to amend the existing regulations by means of the Extraordinary Gazette Notification No. 2508/27 dated 2026-10-01, prescribing Sri Lanka standard 1212 for the import of passenger types (HS Code 4011.10.90) and Sri Lanka standard 1347 for the import of
pneumatic tires for three – wheeled vehicles (HS Code 4011.90.10).
Accordingly, the Cabinet of Ministers has approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning, and Economic Development to submit the aforementioned regulations to Parliament for approval.
Approval of the Cabinet of Ministers was granted at their meeting held on 02.06.2025 to introduce a new act to promote and providing legal provisions for facilitating the Public Private Joint Enterprises within Sri Lanka as well as the establishment of the National Agency for Public Private Partnership Joint Enterprises.
Accordingly, the Legal Draftsman has formulated the relevant draft bill and the Attorney General has given his clearance to the said draft bill.
The Cabinet of Ministers approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning and Economic Development to publish the said
draft bill in the government gazette notification and thereby submit it to the Parliament for its concurrence.
Regulation, development and control of indigenous medical sector in Sri Lanka comprised of Ayurvedha, Sidhdha, Unani, Local Therapies are carried out under the provisions of Ayurvedha Act No. 31 of 1961.
Although amendments were made to the act from time to time as per the requirements, the necessity of further amending the Ayurvedha Act has been identified to enable efficiently maintaining all activities of local medical field productively, further formalizing the regulation of the sector, taking actions to providing licenses applicable to export of local medicines, and achieving the progress and sustainable development goals in the local medical sector.
Based on the said factors, the Cabinet of Ministers granted approval to the resolution furnished by the Minister of Health and Mass Media to direct the Legal Draftsman to formulate a draft bill to amend the Ayurvedha Act No. 31 of 1961.
Import and Export (Control) Regulations No. 08 of 2026
Draft Bill of the Public Private Partnership Enterprises Act to be gazzetted
Amendment of the Ayurvedha Act No. 31 of 1961
Cabinet nod to amend the Sri Lanka Development Administration Institute Act No. 9 of 1982
Establishment of the National Higher Performance Centre
State patronage for the cremation ceremony of the late deputy prelate (Anu Nayaka Thero) of the Sri Laka Ramangya Maha Nikaya, Gatambe Rajopawanramadhipatha, Siri Chandawimala Wanshalankara, Chandrakeerthi Sri Amarawansha, Sadhdharmawageeshwara, Shasanashobhanna Most Venerable Keppetiyagoda Siriwimalabhidhana Thero
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