Features

Present status of construction contractors and construction industry in SL

Published

4 years ago

2021/08/16

The book being handed over to Ajith Nivard Cabraal, State Minister of Money & Capital Market and State Enterprise Reforms by the author, Mr. Ruwan de Silva

Need for urgent reforms for improvement

(This article is an excerpt of my book ‘PRESENT STATUS OF CONSTRUCTION CONTRACTORS AND THE CONSTRUCTION

INDUSTRY IN SRI LANKA AND THE NEED FOR URGENT REFORMS FOR IMPROVEMENT’, which was published in Jan. 2021. – Ruwan De Silva)

Construction impacts everyone across the globe. Construction industry accounts for 6% of global GDP and is considered to be a powerful stimulant for economic growth. Various studies conducted worldwide has predicted a steady growth trajectory for the construction industry in the current decade. This presents numerous opportunities for Sri Lankan construction organisations to venture abroad. Sri Lanka too will continue to witness a continuous increase in construction related-activities. Large scale infrastructure projects are already in the pipeline and the country’s mega Port city development project is open for construction activities. The land reclamation and filling work of port City has already been completed and the next phase will see the infrastructure facilities being developed within the Port City, followed by construction of buildings. It is needless to say that we can be certain that there will be a massive increase in construction activities in Sri Lanka in the next few years.

In Sri Lanka, the construction industry contributes 7.1% to the GDP of the country and is considered to be one of the major drivers of economic development in Sri Lanka. Despite the rosy pictures, as mentioned above, the Sri Lankan construction industry itself has been facing severe difficulties and financial losses; and is not able to capitalize on the growth opportunities. Why is that?

My intimate involvement with the construction industry, for the last three decades has given me the opportunity to understand and analyse the numerous problems faced by the construction industry. In my book, I endeavoured to discuss these problems faced by the Sri Lankan construction companies, suggest recommendations for correcting the current problems faced by the industry and the measures that could be taken to make the construction industry on par with international standards. I hope this book will create awareness among the Government policy makers, government officers, construction sector professionals and business leaders of the current problems affecting the industry and the measures that need to be adopted to develop the industry.

The reasons for the current state of affairs in the construction industry can be attributed to many factors. I have identified 42 factors that are vitally important to the construction industry. 33 of these factors are related to the current problems that the industry faces and hence the need to be either rectified or improved through policy intervention and industry involvement. The other nine factors are linked to the emerging global issues and need to be embraced by the country and the construction industry.

The book analyses these factors in detail and provide recommendations for rectifying the short comings and developing the industry to become internationally competitive. The identified 42 factors can be broadly categorised into six categories, as follows:

Government Regulatory landscape

* Business and Labour landscape;

* Economic landscape;

* Education and Technical skills;

* Competitive landscapes;

* Absorption of latest developments by the local construction industry

Government regulatory landscape

Following are some of the problems faced by the construction contractors in their interaction with Government authorities:

* Inconsistencies in system and procedures adopted by the government ministries

* Discrepancies between Works procurement guidelines’ and CIDA ‘Standard bidding documents’

* Conditions of contract that is not suitable to the Sri Lankan conditions

* Bureaucratic delay

* Unrealistic total cost estimates

* Price fixing committees

* Pricing preambles

* Retention money and performance bond in the conditions of contract

* Delay in payments

* Unfair liquidated damages

* Ease of doing business

* Political stability and uncertainties

Business and Labour landscape

* Labour shortage and productivity

* Shortage of skilled labour

* Labour laws

* Holidays

* High employee turnover among co

* Micro, small and medium scale contractors

* Survival and development of large scale contractors

* Industry productivity

* Safety and Health in construction

* Image and Industry

* Entrepreneurship in construction industry

Economic landscape

* Cost of finance

* Inflation, Exchange rate and Cost of Raw materials

* Tax Structure

* Construction Guarantee Fund

* Financing the construction industry via development banking

* Economic Slowdown

* Economic Freedom

Education and Technical skills

* Education and training

* Capacity building

* Language proficiency in construction

Competitive landscape

* Threat from international contractors

* Unfair competition from state agencies

* Industry competitiveness

Absorption of latest developments by the local construction

industry

* Technical infrastructure and Knowhow

* Research and Development

* Innovation in construction industry

* Design – Build

* Sustainable Development Goals

* Global Warming and Construction

In addition to the above issues COVID-19 Pandemic that has been ravaging the world during the past one year and a half has brought about long lasting changes to the way we live and work. Existing business models are giving way to entirely new business models and remote working has become a necessity. This will continue at a rapid pace and we need to adjust to this new reality. The outbreak of the pandemic and the subsequent lockdowns have resulted in massive losses and cash flow problems to majority of the business sectors, including the construction sector, worldwide. This had a devastating effect on the Sri Lankan construction industry which was already undergoing a crisis.

The much desired new normalcy and various health guidelines have now led to change in the manner in which general and specific construction operations are carried out. These serious changes to the long established working practices have largely contributed to overall and individual changes of the unit rates, preliminaries and other overhead components like head office overheads. The changes for the standard resource norms have caused productivity related issues (for which the contractors are not responsible), work practice constraints and continuous disruptions due to volatile and dynamic operational environment caused exclusively by COVID-19 related issues. In this regard, we note at this stage that general work rates noted in the standard Building Schedule of Rates (BSR) will no longer renders applicable warranting immediate attention from the authorities for change. Additionally, we see certain constraints and hurdles in recovering such costs under contractual claims under force majeure (exceptional events), changes in legislation or other appropriate claim headings.

While Covid-19 has affected all the economies of the world, the extent of damage to our economy is likely to be much more serious. We are an island nation with a population of 21 million and our economy was in a precarious situation even before the pandemic hit. Therefore, while we are still battling the Covid-19 pandemic, we should prepare ourselves to face the challenges and opportunities emerging in the post pandemic period. There needs to be a policy & strategic planning initiative to address the issues and problems faced by the construction industry, as given in the book.

The Way Forward

Given the right environment, the local construction companies have the potential to compete successfully with international contractors and win projects not only in Sri Lanka but also internationally. The Government should view the construction services as a potential export income earner for the country. Through addressing the above issues and finding proper long term solutions for these ailments, we can build a world class construction industry that will enable our construction companies to become internationally competitive and bring the much needed foreign income to our country.

At this point, it is worth remembering the revival of the construction industry under the leadership of the ex- President R. Premadasa during 1989 – 1990. The late President initiated many schemes, with World Bank assistance, to revive and reform the construction industry and provided grants for construction companies to upgrade their skills and technical capabilities. Many Cabinet directives were issued to create an enabling environment for contractors. The Cabinet paper no. 116 of Dec. 1988 is a good example. This paved the way for locally grown, professionally run, large and medium scale local construction firms in the country.

During this period, Authorities such as ICTAD (presently CIDA) and CHPB were formed to assist the construction industry. The National Construction Association of Sri Lanka, which was formed in 1990 with the assistance and guidance from the World Bank, provided the construction companies with a forum to collectively address the challenges faced by the industry, voice their grievances and have a constant dialogue with the Government. It is important that we need a similar focus by the Government at this crucial period when the construction industry is facing enormous difficulties and challenges.

During the Presidency of Mahinda Rajapakse (2005 – 2014), the Government made huge contributions in uplifting the construction contractors. Many massive infrastructure projects were launched and the contractors had the opportunity to participate in these large projects. Some construction companies even acquired the necessary financial and other resources to compete internationally. The contractors had to undergo many hardships during the period from 2015 – 2019. A large amount of sums owed to the contractors, were either not paid or paid after a lapse of many months. The decision making was painfully slow due to frequent shuffles of Ministries. The fact the Government could not present a proper Budget and had to rely on supplementary budgets instead. The increases in Tax rates had debilitating effect on the businesses. This was further exacerbated by the dastardly Easter day bombings which shook the economy of the country to the core.

CONTINUED TOMORROW

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Features

Crucial test for religious and ethnic harmony in Bangladesh

Published

21 hours ago

2026/02/12

Sahan Weerasooriya

A political protest that led to governmental change in Bangladesh mid last year. (photograph: imago)

Will the Bangladesh parliamentary election bring into being a government that will ensure ethnic and religious harmony in the country? This is the poser on the lips of peace-loving sections in Bangladesh and a principal concern of those outside who mean the country well.

The apprehensions are mainly on the part of religious and ethnic minorities. The parliamentary poll of February 12th is expected to bring into existence a government headed by the Bangladesh Nationalist Party (BNP) and the Islamist oriented Jamaat-e-Islami party and this is where the rub is. If these parties win, will it be a case of Bangladesh sliding in the direction of a theocracy or a state where majoritarian chauvinism thrives?

Chief of the Jamaat, Shafiqur Rahman, who was interviewed by sections of the international media recently said that there is no need for minority groups in Bangladesh to have the above fears. He assured, essentially, that the state that will come into being will be equable and inclusive. May it be so, is likely to be the wish of those who cherish a tension-free Bangladesh.

The party that could have posed a challenge to the above parties, the Awami League Party of former Prime Minister Hasina Wased, is out of the running on account of a suspension that was imposed on it by the authorities and the mentioned majoritarian-oriented parties are expected to have it easy at the polls.

A positive that has emerged against the backdrop of the poll is that most ordinary people in Bangladesh, be they Muslim or Hindu, are for communal and religious harmony and it is hoped that this sentiment will strongly prevail, going ahead. Interestingly, most of them were of the view, when interviewed, that it was the politicians who sowed the seeds of discord in the country and this viewpoint is widely shared by publics all over the region in respect of the politicians of their countries.

Some sections of the Jamaat party were of the view that matters with regard to the orientation of governance are best left to the incoming parliament to decide on but such opinions will be cold comfort for minority groups. If the parliamentary majority comes to consist of hard line Islamists, for instance, there is nothing to prevent the country from going in for theocratic governance. Consequently, minority group fears over their safety and protection cannot be prevented from spreading.

Therefore, we come back to the question of just and fair governance and whether Bangladesh’s future rulers could ensure these essential conditions of democratic rule. The latter, it is hoped, will be sufficiently perceptive to ascertain that a Bangladesh rife with religious and ethnic tensions, and therefore unstable, would not be in the interests of Bangladesh and those of the region’s countries.

Unfortunately, politicians region-wide fall for the lure of ethnic, religious and linguistic chauvinism. This happens even in the case of politicians who claim to be democratic in orientation. This fate even befell Bangladesh’s Awami League Party, which claims to be democratic and socialist in general outlook.

We have it on the authority of Taslima Nasrin in her ground-breaking novel, ‘Lajja’, that the Awami Party was not of any substantial help to Bangladesh’s Hindus, for example, when violence was unleashed on them by sections of the majority community. In fact some elements in the Awami Party were found to be siding with the Hindus’ murderous persecutors. Such are the temptations of hard line majoritarianism.

In Sri Lanka’s past numerous have been the occasions when even self-professed Leftists and their parties have conveniently fallen in line with Southern nationalist groups with self-interest in mind. The present NPP government in Sri Lanka has been waxing lyrical about fostering national reconciliation and harmony but it is yet to prove its worthiness on this score in practice. The NPP government remains untested material.

As a first step towards national reconciliation it is hoped that Sri Lanka’s present rulers would learn the Tamil language and address the people of the North and East of the country in Tamil and not Sinhala, which most Tamil-speaking people do not understand. We earnestly await official language reforms which afford to Tamil the dignity it deserves.

An acid test awaits Bangladesh as well on the nation-building front. Not only must all forms of chauvinism be shunned by the incoming rulers but a secular, truly democratic Bangladesh awaits being licked into shape. All identity barriers among people need to be abolished and it is this process that is referred to as nation-building.

On the foreign policy frontier, a task of foremost importance for Bangladesh is the need to build bridges of amity with India. If pragmatism is to rule the roost in foreign policy formulation, Bangladesh would place priority to the overcoming of this challenge. The repatriation to Bangladesh of ex-Prime Minister Hasina could emerge as a steep hurdle to bilateral accord but sagacious diplomacy must be used by Bangladesh to get over the problem.

A reply to N.A. de S. Amaratunga

A response has been penned by N.A. de S. Amaratunga (please see p5 of ‘The Island’ of February 6th) to a previous column by me on ‘ India shaping-up as a Swing State’, published in this newspaper on January 29th , but I remain firmly convinced that India remains a foremost democracy and a Swing State in the making.

If the countries of South Asia are to effectively manage ‘murderous terrorism’, particularly of the separatist kind, then they would do well to adopt to the best of their ability a system of government that provides for power decentralization from the centre to the provinces or periphery, as the case may be. This system has stood India in good stead and ought to prove effective in all other states that have fears of disintegration.

Moreover, power decentralization ensures that all communities within a country enjoy some self-governing rights within an overall unitary governance framework. Such power-sharing is a hallmark of democratic governance.

Features

Celebrating Valentine’s Day …

Published

21 hours ago

2026/02/12

Sahan Weerasooriya

Valentine’s Day is all about celebrating love, romance, and affection, and this is how some of our well-known personalities plan to celebrate Valentine’s Day – 14th February:

Merlina Fernando (Singer)

Yes, it’s a special day for lovers all over the world and it’s even more special to me because 14th February is the birthday of my husband Suresh, who’s the lead guitarist of my band Mission.

We have planned to celebrate Valentine’s Day and his Birthday together and it will be a wonderful night as always.

We will be having our fans and close friends, on that night, with their loved ones at Highso – City Max hotel Dubai, from 9.00 pm onwards.

Lorensz Francke (Elvis Tribute Artiste)

On Valentine’s Day I will be performing a live concert at a Wealthy Senior Home for Men and Women, and their families will be attending, as well.

I will be performing live with romantic, iconic love songs and my song list would include ‘Can’t Help falling in Love’, ‘Love Me Tender’, ‘Burning Love’, ‘Are You Lonesome Tonight’, ‘The Wonder of You’ and ‘’It’s Now or Never’ to name a few.

To make Valentine’s Day extra special I will give the Home folks red satin scarfs.

Emma Shanaya (Singer)

I plan on spending the day of love with my girls, especially my best friend. I don’t have a romantic Valentine this year but I am thrilled to spend it with the girl that loves me through and through. I’ll be in Colombo and look forward to go to a cute cafe and spend some quality time with my childhood best friend Zulha.

JAYASRI

Emma-and-Maneeka

This Valentine’s Day the band JAYASRI we will be really busy; in the morning we will be landing in Sri Lanka, after our Oman Tour; then in the afternoon we are invited as Chief Guests at our Maris Stella College Sports Meet, Negombo, and late night we will be with LineOne band live in Karandeniya Open Air Down South. Everywhere we will be sharing LOVE with the mass crowds.

Kay Jay (Singer)

I will stay at home and cook a lovely meal for lunch, watch some movies, together with Sanjaya, and, maybe we go out for dinner and have a lovely time. Come to think of it, every day is Valentine’s Day for me with Sanjaya Alles.

Maneka Liyanage (Beauty Tips)

On this special day, I celebrate love by spending meaningful time with the people I cherish. I prepare food with love and share meals together, because food made with love brings hearts closer. I enjoy my leisure time with them — talking, laughing, sharing stories, understanding each other, and creating beautiful memories. My wish for this Valentine’s Day is a world without fighting — a world where we love one another like our own beloved, where we do not hurt others, even through a single word or action. Let us choose kindness, patience, and understanding in everything we do.

Janaka Palapathwala (Singer)

Janaka

Valentine’s Day should not be the only day we speak about love.

From the moment we are born into this world, we seek love, first through the very drop of our mother’s milk, then through the boundless care of our Mother and Father, and the embrace of family.

Love is everywhere. All living beings, even plants, respond in affection when they are loved.

As we grow, we learn to love, and to be loved. One day, that love inspires us to build a new family of our own.

Love has no beginning and no end. It flows through every stage of life, timeless, endless, and eternal.

Natasha Rathnayake (Singer)

We don’t have any special plans for Valentine’s Day. When you’ve been in love with the same person for over 25 years, you realise that love isn’t a performance reserved for one calendar date. My husband and I have never been big on public displays, or grand gestures, on 14th February. Our love is expressed quietly and consistently, in ordinary, uncelebrated moments.

With time, you learn that love isn’t about proving anything to the world or buying into a commercialised idea of romance—flowers that wilt, sweets that spike blood sugar, and gifts that impress briefly but add little real value. In today’s society, marketing often pushes the idea that love is proven by how much money you spend, and that buying things is treated as a sign of commitment.

Real love doesn’t need reminders or price tags. It lives in showing up every day, choosing each other on unromantic days, and nurturing the relationship intentionally and without an audience.

This isn’t a judgment on those who enjoy celebrating Valentine’s Day. It’s simply a personal choice.

Melloney Dassanayake (Miss Universe Sri Lanka 2024)

I truly believe it’s beautiful to have a day specially dedicated to love. But, for me, Valentine’s Day goes far beyond romantic love alone. It celebrates every form of love we hold close to our hearts: the love for family, friends, and that one special person who makes life brighter. While 14th February gives us a moment to pause and celebrate, I always remind myself that love should never be limited to just one day. Every single day should feel like Valentine’s Day – constant reminder to the people we love that they are never alone, that they are valued, and that they matter.

I’m incredibly blessed because, for me, every day feels like Valentine’s Day. My special person makes sure of that through the smallest gestures, the quiet moments, and the simple reminders that love lives in the details. He shows me that it’s the little things that count, and that love doesn’t need grand stages to feel extraordinary. This Valentine’s Day, perfection would be something intimate and meaningful: a cozy picnic in our home garden, surrounded by nature, laughter, and warmth, followed by an abstract drawing session where we let our creativity flow freely. To me, that’s what love is – simple, soulful, expressive, and deeply personal. When love is real, every ordinary moment becomes magical.

Noshin De Silva (Actress)

Valentine’s Day is one of my favourite holidays! I love the décor, the hearts everywhere, the pinks and reds, heart-shaped chocolates, and roses all around. But honestly, I believe every day can be Valentine’s Day.

It doesn’t have to be just about romantic love. It’s a chance to celebrate love in all its forms with friends, family, or even by taking a little time for yourself.

Whether you’re spending the day with someone special or enjoying your own company, it’s a reminder to appreciate meaningful connections, show kindness, and lead with love every day.

And yes, I’m fully on theme this year with heart nail art and heart mehendi design!

Wishing everyone a very happy Valentine’s Day, but, remember, love yourself first, and don’t forget to treat yourself.

Sending my love to all of you.

Features

Banana and Aloe Vera

Published

21 hours ago

2026/02/12

Sahan Weerasooriya

To create a powerful, natural, and hydrating beauty mask that soothes inflammation, fights acne, and boosts skin radiance, mix a mashed banana with fresh aloe vera gel.

This nutrient-rich blend acts as an antioxidant-packed anti-ageing treatment that also doubles as a nourishing, shiny hair mask.

* Face Masks for Glowing Skin:

Mix 01 ripe banana with 01 tablespoon of fresh aloe vera gel and apply this mixture to the face. Massage for a few minutes, leave for 15-20 minutes, and then rinse off for a glowing complexion.

* Acne and Soothing Mask:

Mix 01 tablespoon of fresh aloe vera gel with 1/2 a mashed banana and 01 teaspoon of honey. Apply this mixture to clean skin to calm inflammation, reduce redness, and hydrate dry, sensitive skin. Leave for 15-20 minutes, and rinse with warm water.

* Hair Treatment for Shine:

Mix 01 fresh ripe banana with 03 tablespoons of fresh aloe vera gel and 01 teaspoon of honey. Apply from scalp to ends, massage for 10-15 minutes and then let it dry for maximum absorption. Rinse thoroughly with cool water for soft, shiny, and frizz-free hair.