Business
Sri Lanka’s construction industry losing ground while no one watches
The 21st edition of the “Build Sri Lanka” housing and construction exhibition concluded last week at the BMICH. On the surface, it was a modest success: stalls were staffed, catalogues were exchanged, and the usual dignitaries cut the usual ribbons. But beneath the low hum of polite conversation, a far more urgent story was unfolding – one that policymakers appear to have missed entirely.
For an industry that contributes nearly 8% to Sri Lanka’s GDP and employs over 500,000 people, the quiet profile of this year’s exhibition was telling – the kind that settles over an industry bracing for impact.
The Chamber of Construction Industry (CCI) President, Manilal Fernando, used the platform not to celebrate, but to warn. Two specific points he raised should be ringing alarm bells in the Treasury and the Ministry of Housing. But because the event lacked high-level political attendance, these warnings have so far fallen into a policy void.
Fernando noted that after a brutal slump from 2020 to 2023, the industry saw a fragile recovery in 2024. But that green shoot is now withering. “With the rupee volatility due to the war in the Persian Gulf,” he said, “again we are heading for uncertain times.”
According to CCI, Sri Lanka’s construction industry is an importer in disguise. Over 60% of construction materials from steel and cement to tiles, fittings, and MEP (mechanical, electrical, plumbing) components are either directly imported or have high import content. Even locally manufactured items rely on imported raw materials.
When the rupee depreciates, costs don’t just rise; they leap. And here is the crux according to Fernando : current contractual payment mechanisms do not automatically reflect these real-time cost increases. As he warned, unless cost escalations are correctly reflected in contract payments, many contractors and consultants will simply be unable to perform. That means stalled projects, abandoned housing schemes, and unfinished infrastructure – paid for, but not delivered.
The second issue is even more maddening because it is entirely within the government’s control to fix. Fernando revealed that a set of long-overdue amendments to the Construction Industry Development Act (CID Act) was finalised in 2024. These amendments were developed over six years by the National Advisory Council on Construction, approved by the Legal Draftsman, and could be enacted within two months.
But instead of enacting these ready-made fixes, CIDA is now pushing for a complete overhaul of the Act – a process that will take a minimum of two years to reach parliament.
He pointed out that without these amendments, the industry lacks a fair, transparent price variation mechanism. Right now, MEP contractors and others complain that CIDA’s official price indices do not reflect actual market price fluctuations. The CCI, therefore, proposed a simple solution: a joint committee (CCI + reputable contractors + CIDA) to oversee index compilation. But even that cannot be implemented effectively without the Act’s update.
The construction industry, once a bellwether of national economic health, is now whispering its crises in a conference hall with no television cameras to air high-decibel news stories or make it a headline event.
The builders of Sri Lanka are not asking for subsidies. They are asking for predictability, fairness, and speed. The war in the Persian Gulf is beyond Sri Lanka’s control. But the CID Act and contract index reforms are not.
By Sanath Nanayakkare
Business
SLTDA launches NTSP campaign to elevate national tourism quality and standards
by Claude Gunasekera
The Sri Lanka Tourism Development Authority (SLTDA) officially launched its nationwide capacity-building campaign, “Grow your Tourism Business with National Tourism Skilling Programme (NTSP),” August 31, from the scenic regional hub of Ella. Directed under the leadership of the Tourism Deputy Minister, Prof. Ruwan Ranasinghe, the comprehensive initiative aims to transform micro, small, and medium enterprises (MSMEs) by accelerating their digital readiness and business formalization across the local hospitality ecosystem.
The entire islandwide operation is under the direct coordination of Ms. Tharanga Rupasinghe, the SLTDA Director of Standards and Quality Assurance, ensuring that all rural operators align seamlessly with international hospitality standards. By utilizing the framework of the NTSP, the campaign focuses on delivering essential digital payment tools, modern online marketing insights, and compliance frameworks directly to village-level enterprises, handcraft artisans, and independent tour operators. Speaking at the launch event in Ella, Tourism Deputy Minister Prof. Ruwan Ranasinghe emphasised that sustainable growth in the travel sector relies heavily on empowering smaller stakeholders to become resilient, data-driven participants in the modern market. “True economic resilience in our tourism sector cannot be achieved through large-scale infrastructure alone, but must be built from the ground up by transforming our local communities and regional MSMEs into direct, digitally enabled beneficiaries of global travel traffic,” Prof. Ranasinghe noted. Through this synchronized, localized training approach, the SLTDA intends to systematically protect cultural heritage while elevating the service quality benchmarks of regional travel hotspots nationwide.
Regional hospitality groups, led by the Ella Tourism Association, have strongly welcomed the launch of the SLTDA national skilling campaign, calling it a vital step toward safeguarding the destination’s international reputation. Local operators noted that rapid commercial growth in the Uva Province has highlighted an urgent need for structural standardization, making the arrival of the National Tourism Skilling Programme (NTSP) highly timely. The grassroots response focused heavily on the benefits of formalization and digital integration for the region’s diverse service sector. The Ella Homestay Owners Collective praised the focus on digital payment tools, noting that transition support will help smaller vendors capture direct bookings and reduce their reliance on third-party booking commissions.
The Uva Tuk-Tuk and Adventure Guides Association highlighted that the safety and compliance training will build trust with high-spending international travelers, effectively raising service quality benchmarks across the town. Local association leaders emphasized that having Ms. Tharanga Rupasinghe, SLTDA Director of Standards and Quality Assurance, directly coordinate the field training ensures the program addresses practical, local challenges rather than just theoretical rules. Following the initial rollout, regional committees have pledged to work alongside the SLTDA to ensure that even the smallest village artisans and micro-enterprises achieve official registration, positioning Ella as a model hub for high-quality, community-driven sustainable tourism.
Business
Sri Lanka–Indonesia Business Council holds 3rd Annual General Meeting
The Sri Lanka–Indonesia Business Council of The Ceylon Chamber of Commerce held its 3rd Annual General Meeting recently, bringing together Council members and key stakeholders to review the Council’s activities and priorities for the year ahead. The AGM was graced by Dewi Gustina Tobing, Ambassador of Indonesia to Sri Lanka and Patron of the Council
Delivering her address, Dewi Gustina Tobing, Ambassador of Indonesia to Sri Lanka, provided a comprehensive overview of Indonesia’s political and economic landscape, highlighting the country’s focus on promoting economic independence, strengthening sectoral resilience, improving public welfare, and facilitating both inbound and outbound investment.
Re-elected as President of the Council for 2026/27, Sheamalee Wickramasingha, Chairman / Group Managing Director of Ceylon Biscuits Ltd. acknowledged the instrumental role played by the Ambassador in the re-establishment of the Council and reflected on the Council’s key achievements during the past year. She highlighted the successful Sri Lanka–Indonesia Business Delegation to Indonesia, which provided valuable opportunities for Sri Lankan businesses to engage with Indonesian counterparts and explore avenues for commercial cooperation.
Business
LAUGFS Supermarkets opens 46th outlet in Kotahena
LAUGFS Supermarkets has further strengthened its growing retail presence with the opening of its 46th outlet at No. 78, K.B. Christy Perera Mawatha, Kotahena. The new outlet operates 24 hours a day, offering customers a wide range of products together with bakery and hot food options, providing greater convenience and accessibility to the surrounding community.
The new Kotahena outlet further expands LAUGFS Supermarkets’ growing network and reflects the Group’s continued focus on strengthening its presence in strategic locations across the country. The opening ceremony was attended by the Group Chairman, Group Executive Vice Chairman, Acting Group Managing Director/Group Executive Director and senior management.
Commenting on the opening, the Sector Managing Director/CEO – Retail, Niroshan De Silva, said, “The opening of our 46th outlet reflects the dedication, teamwork and determination of our people, who have worked exceptionally hard to bring this outlet together. The new Kotahena outlet is designed to offer customers greater convenience, with an inbuilt bakery and hot food facility that provides freshly prepared food alongside our wide range of products, all under one roof. Our focus is to ensure that every LAUGFS Supermarket operates to the highest standards and consistently delivers quality, convenience and service excellence to our customers.”
The opening of the Kotahena outlet marks another significant milestone in LAUGFS Supermarkets’ ongoing expansion, bringing its products and services closer to more customers while further enhancing its 24-hour retail offering. With its growing network of outlets and continued focus on customer convenience and service excellence, LAUGFS Supermarkets remains committed to strengthening its presence and creating greater value for customers across Sri Lanka.
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