Features
Present status of construction contractors and construction industry in SL
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
Features
Disaster-proofing paradise: Sri Lanka’s new path to global resilience
iyadasa Advisor to the Ministry of Science & Technology and a Board of Directors of Sri Lanka Atomic Energy Regulatory Council A value chain management consultant to www.vivonta.lk
As climate shocks multiply worldwide from unseasonal droughts and flash floods to cyclones that now carry unpredictable fury Sri Lanka, long known for its lush biodiversity and heritage, stands at a crossroads. We can either remain locked in a reactive cycle of warnings and recovery, or boldly transform into the world’s first disaster-proof tropical nation — a secure haven for citizens and a trusted destination for global travelers.
The Presidential declaration to transition within one year from a limited, rainfall-and-cyclone-dependent warning system to a full-spectrum, science-enabled resilience model is not only historic — it’s urgent. This policy shift marks the beginning of a new era: one where nature, technology, ancient wisdom, and community preparedness work in harmony to protect every Sri Lankan village and every visiting tourist.
The Current System’s Fatal Gaps
Today, Sri Lanka’s disaster management system is dangerously underpowered for the accelerating climate era. Our primary reliance is on monsoon rainfall tracking and cyclone alerts — helpful, but inadequate in the face of multi-hazard threats such as flash floods, landslides, droughts, lightning storms, and urban inundation.
Institutions are fragmented; responsibilities crisscross between agencies, often with unclear mandates and slow decision cycles. Community-level preparedness is minimal — nearly half of households lack basic knowledge on what to do when a disaster strikes. Infrastructure in key regions is outdated, with urban drains, tank sluices, and bunds built for rainfall patterns of the 1960s, not today’s intense cloudbursts or sea-level rise.
Critically, Sri Lanka is not yet integrated with global planetary systems — solar winds, El Niño cycles, Indian Ocean Dipole shifts — despite clear evidence that these invisible climate forces shape our rainfall, storm intensity, and drought rhythms. Worse, we have lost touch with our ancestral systems of environmental management — from tank cascades to forest sanctuaries — that sustained this island for over two millennia.
This system, in short, is outdated, siloed, and reactive. And it must change.
A New Vision for Disaster-Proof Sri Lanka
Under the new policy shift, Sri Lanka will adopt a complete resilience architecture that transforms climate disaster prevention into a national development strategy. This system rests on five interlinked pillars:
Science and Predictive Intelligence
We will move beyond surface-level forecasting. A new national climate intelligence platform will integrate:
AI-driven pattern recognition of rainfall and flood events
Global data from solar activity, ocean oscillations (ENSO, MJO, IOD)
High-resolution digital twins of floodplains and cities
Real-time satellite feeds on cyclone trajectory and ocean heat
The adverse impacts of global warming—such as sea-level rise, the proliferation of pests and diseases affecting human health and food production, and the change of functionality of chlorophyll—must be systematically captured, rigorously analysed, and addressed through proactive, advance decision-making.
This fusion of local and global data will allow days to weeks of anticipatory action, rather than hours of late alerts.
Advanced Technology and Early Warning Infrastructure
Cell-broadcast alerts in all three national languages, expanded weather radar, flood-sensing drones, and tsunami-resilient siren networks will be deployed. Community-level sensors in key river basins and tanks will monitor and report in real-time. Infrastructure projects will now embed climate-risk metrics — from cyclone-proof buildings to sea-level-ready roads.
Governance Overhaul
A new centralised authority — Sri Lanka Climate & Earth Systems Resilience Authority — will consolidate environmental, meteorological, Geological, hydrological, and disaster functions. It will report directly to the Cabinet with a real-time national dashboard. District Disaster Units will be upgraded with GN-level digital coordination. Climate literacy will be declared a national priority.
People Power and Community Preparedness
We will train 25,000 village-level disaster wardens and first responders. Schools will run annual drills for floods, cyclones, tsunamis and landslides. Every community will map its local hazard zones and co-create its own resilience plan. A national climate citizenship programme will reward youth and civil organisations contributing to early warning systems, reforestation (riverbank, slopy land and catchment areas) , or tech solutions.
Reviving Ancient Ecological Wisdom
Sri Lanka’s ancestors engineered tank cascades that regulated floods, stored water, and cooled microclimates. Forest belts protected valleys; sacred groves were biodiversity reservoirs. This policy revives those systems:
Restoring 10,000 hectares of tank ecosystems
Conserving coastal mangroves and reintroducing stone spillways
Integrating traditional seasonal calendars with AI forecasts
Recognising Vedda knowledge of climate shifts as part of national risk strategy
Our past and future must align, or both will be lost.
A Global Destination for Resilient Tourism
Climate-conscious travelers increasingly seek safe, secure, and sustainable destinations. Under this policy, Sri Lanka will position itself as the world’s first “climate-safe sanctuary island” — a place where:
Resorts are cyclone- and tsunami-resilient
Tourists receive live hazard updates via mobile apps
World Heritage Sites are protected by environmental buffers
Visitors can witness tank restoration, ancient climate engineering, and modern AI in action
Sri Lanka will invite scientists, startups, and resilience investors to join our innovation ecosystem — building eco-tourism that’s disaster-proof by design.
Resilience as a National Identity
This shift is not just about floods or cyclones. It is about redefining our identity. To be Sri Lankan must mean to live in harmony with nature and to be ready for its changes. Our ancestors did it. The science now supports it. The time has come.
Let us turn Sri Lanka into the world’s first climate-resilient heritage island — where ancient wisdom meets cutting-edge science, and every citizen stands protected under one shield: a disaster-proof nation.
Features
The minstrel monk and Rafiki the old mandrill in The Lion King – I
Why is national identity so important for a people? AI provides us with an answer worth understanding critically (Caveat: Even AI wisdom should be subjected to the Buddha’s advice to the young Kalamas):
‘A strong sense of identity is crucial for a people as it fosters belonging, builds self-worth, guides behaviour, and provides resilience, allowing individuals to feel connected, make meaningful choices aligned with their values, and maintain mental well-being even amidst societal changes or challenges, acting as a foundation for individual and collective strength. It defines “who we are” culturally and personally, driving shared narratives, pride, political action, and healthier relationships by grounding people in common values, traditions, and a sense of purpose.’
Ethnic Sinhalese who form about 75% of the Sri Lankan population have such a unique identity secured by the binding medium of their Buddhist faith. It is significant that 93% of them still remain Buddhist (according to 2024 statistics/wikipedia), professing Theravada Buddhism, after four and a half centuries of coercive Christianising European occupation that ended in 1948. The Sinhalese are a unique ancient island people with a 2500 year long recorded history, their own language and country, and their deeply evolved Buddhist cultural identity.
Buddhism can be defined, rather paradoxically, as a non-religious religion, an eminently practical ethical-philosophy based on mind cultivation, wisdom and universal compassion. It is an ethico-spiritual value system that prioritises human reason and unaided (i.e., unassisted by any divine or supernatural intervention) escape from suffering through self-realisation. Sri Lanka’s benignly dominant Buddhist socio-cultural background naturally allows unrestricted freedom of religion, belief or non-belief for all its citizens, and makes the country a safe spiritual haven for them. The island’s Buddha Sasana (Dispensation of the Buddha) is the inalienable civilisational treasure that our ancestors of two and a half millennia have bequeathed to us. It is this enduring basis of our identity as a nation which bestows on us the personal and societal benefits of inestimable value mentioned in the AI summary given at the beginning of this essay.
It was this inherent national identity that the Sri Lankan contestant at the 72nd Miss World 2025 pageant held in Hyderabad, India, in May last year, Anudi Gunasekera, proudly showcased before the world, during her initial self-introduction. She started off with a verse from the Dhammapada (a Pali Buddhist text), which she explained as meaning “Refrain from all evil and cultivate good”. She declared, “And I believe that’s my purpose in life”. Anudi also mentioned that Sri Lanka had gone through a lot “from conflicts to natural disasters, pandemics, economic crises….”, adding, “and yet, my people remain hopeful, strong, and resilient….”.
“Ayubowan! I am Anudi Gunasekera from Sri Lanka. It is with immense pride that I represent my Motherland, a nation of resilience, timeless beauty, and a proud history, Sri Lanka.
“I come from Anuradhapura, Sri Lanka’s first capital, and UNESCO World Heritage site, with its history and its legacy of sacred monuments and stupas…….”.
The “inspiring words” that Anudi quoted are from the Dhammapada (Verse 183), which runs, in English translation: “To avoid all evil/To cultivate good/and to cleanse one’s mind -/this is the teaching of the Buddhas”. That verse is so significant because it defines the basic ‘teaching of the Buddhas’ (i.e., Buddha Sasana; this is how Walpole Rahula Thera defines Buddha Sasana in his celebrated introduction to Buddhism ‘What the Buddha Taught’ first published in1959).
Twenty-five year old Anudi Gunasekera is an alumna of the University of Kelaniya, where she earned a bachelor’s degree in International Studies. She is planning to do a Master’s in the same field. Her ambition is to join the foreign service in Sri Lanka. Gen Z’er Anudi is already actively engaged in social service. The Saheli Foundation is her own initiative launched to address period poverty (i.e., lack of access to proper sanitation facilities, hygiene and health education, etc.) especially among women and post-puberty girls of low-income classes in rural and urban Sri Lanka.
Young Anudi is primarily inspired by her patriotic devotion to ‘my Motherland, a nation of resilience, timeless beauty, and a proud history, Sri Lanka’. In post-independence Sri Lanka, thousands of young men and women of her age have constantly dedicated themselves, oftentimes making the supreme sacrifice, motivated by a sense of national identity, by the thought ‘This is our beloved Motherland, these are our beloved people’.
The rescue and recovery of Sri Lanka from the evil aftermath of a decade of subversive ‘Aragalaya’ mayhem is waiting to be achieved, in every sphere of national engagement, including, for example, economics, communications, culture and politics, by the enlightened Anudi Gunasekeras and their male counterparts of the Gen Z, but not by the demented old stragglers lingering in the political arena listening to the unnerving rattle of “Time’s winged chariot hurrying near”, nor by the baila blaring monks at propaganda rallies.
Politically active monks (Buddhist bhikkhus) are only a handful out of the Maha Sangha (the general body of Buddhist bhikkhus) in Sri Lanka, who numbered just over 42,000 in 2024. The vast majority of monks spend their time quietly attending to their monastic duties. Buddhism upholds social and emotional virtues such as universal compassion, empathy, tolerance and forgiveness that protect a society from the evils of tribalism, religious bigotry and death-dealing religious piety.
Not all monks who express or promote political opinions should be censured. I choose to condemn only those few monks who abuse the yellow robe as a shield in their narrow partisan politics. I cannot bring myself to disapprove of the many socially active monks, who are articulating the genuine problems that the Buddha Sasana is facing today. The two bhikkhus who are the most despised monks in the commercial media these days are Galaboda-aththe Gnanasara and Ampitiye Sumanaratana Theras. They have a problem with their mood swings. They have long been whistleblowers trying to raise awareness respectively, about spreading religious fundamentalism, especially, violent Islamic Jihadism, in the country and about the vandalising of the Buddhist archaeological heritage sites of the north and east provinces. The two middle-aged monks (Gnanasara and Sumanaratana) belong to this respectable category. Though they are relentlessly attacked in the social media or hardly given any positive coverage of the service they are doing, they do nothing more than try to persuade the rulers to take appropriate action to resolve those problems while not trespassing on the rights of people of other faiths.
These monks have to rely on lay political leaders to do the needful, without themselves taking part in sectarian politics in the manner of ordinary members of the secular society. Their generally demonised social image is due, in my opinion, to three main reasons among others: 1) spreading misinformation and disinformation about them by those who do not like what they are saying and doing, 2) their own lack of verbal restraint, and 3) their being virtually abandoned to the wolves by the temporal and spiritual authorities.
(To be continued)
By Rohana R. Wasala ✍️
Features
US’ drastic aid cut to UN poses moral challenge to world
‘Adapt, shrink or die’ – thus runs the warning issued by the Trump administration to UN humanitarian agencies with brute insensitivity in the wake of its recent decision to drastically reduce to $2bn its humanitarian aid to the UN system. This is a substantial climb down from the $17bn the US usually provided to the UN for its humanitarian operations.
Considering that the US has hitherto been the UN’s biggest aid provider, it need hardly be said that the US decision would pose a daunting challenge to the UN’s humanitarian operations around the world. This would indeed mean that, among other things, people living in poverty and stifling material hardships, in particularly the Southern hemisphere, could dramatically increase. Coming on top of the US decision to bring to an end USAID operations, the poor of the world could be said to have been left to their devices as a consequence of these morally insensitive policy rethinks of the Trump administration.
Earlier, the UN had warned that it would be compelled to reduce its aid programs in the face of ‘the deepest funding cuts ever.’ In fact the UN is on record as requesting the world for $23bn for its 2026 aid operations.
If this UN appeal happens to go unheeded, the possibilities are that the UN would not be in a position to uphold the status it has hitherto held as the world’s foremost humanitarian aid provider. It would not be incorrect to state that a substantial part of the rationale for the UN’s existence could come in for questioning if its humanitarian identity is thus eroded.
Inherent in these developments is a challenge for those sections of the international community that wish to stand up and be counted as humanists and the ‘Conscience of the World.’ A responsibility is cast on them to not only keep the UN system going but to also ensure its increased efficiency as a humanitarian aid provider to particularly the poorest of the poor.
It is unfortunate that the US is increasingly opting for a position of international isolation. Such a policy position was adopted by it in the decades leading to World War Two and the consequences for the world as a result for this policy posture were most disquieting. For instance, it opened the door to the flourishing of dictatorial regimes in the West, such as that led by Adolph Hitler in Germany, which nearly paved the way for the subjugation of a good part of Europe by the Nazis.
If the US had not intervened militarily in the war on the side of the Allies, the West would have faced the distressing prospect of coming under the sway of the Nazis and as a result earned indefinite political and military repression. By entering World War Two the US helped to ward off these bleak outcomes and indeed helped the major democracies of Western Europe to hold their own and thrive against fascism and dictatorial rule.
Republican administrations in the US in particular have not proved the greatest defenders of democratic rule the world over, but by helping to keep the international power balance in favour of democracy and fundamental human rights they could keep under a tight leash fascism and linked anti-democratic forces even in contemporary times. Russia’s invasion and continued occupation of parts of Ukraine reminds us starkly that the democracy versus fascism battle is far from over.
Right now, the US needs to remain on the side of the rest of the West very firmly, lest fascism enjoys another unfettered lease of life through the absence of countervailing and substantial military and political power.
However, by reducing its financial support for the UN and backing away from sustaining its humanitarian programs the world over the US could be laying the ground work for an aggravation of poverty in the South in particular and its accompaniments, such as, political repression, runaway social discontent and anarchy.
What should not go unnoticed by the US is the fact that peace and social stability in the South and the flourishing of the same conditions in the global North are symbiotically linked, although not so apparent at first blush. For instance, if illegal migration from the South to the US is a major problem for the US today, it is because poor countries are not receiving development assistance from the UN system to the required degree. Such deprivation on the part of the South leads to aggravating social discontent in the latter and consequences such as illegal migratory movements from South to North.
Accordingly, it will be in the North’s best interests to ensure that the South is not deprived of sustained development assistance since the latter is an essential condition for social contentment and stable governance, which factors in turn would guard against the emergence of phenomena such as illegal migration.
Meanwhile, democratic sections of the rest of the world in particular need to consider it a matter of conscience to ensure the sustenance and flourishing of the UN system. To be sure, the UN system is considerably flawed but at present it could be called the most equitable and fair among international development organizations and the most far-flung one. Without it world poverty would have proved unmanageable along with the ills that come along with it.
Dehumanizing poverty is an indictment on humanity. It stands to reason that the world community should rally round the UN and ensure its survival lest the abomination which is poverty flourishes. In this undertaking the world needs to stand united. Ambiguities on this score could be self-defeating for the world community.
For example, all groupings of countries that could demonstrate economic muscle need to figure prominently in this initiative. One such grouping is BRICS. Inasmuch as the US and the West should shrug aside Realpolitik considerations in this enterprise, the same goes for organizations such as BRICS.
The arrival at the above international consensus would be greatly facilitated by stepped up dialogue among states on the continued importance of the UN system. Fresh efforts to speed-up UN reform would prove major catalysts in bringing about these positive changes as well. Also requiring to be shunned is the blind pursuit of narrow national interests.
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