CIOB congratulates newly appointed Minister of Finance, Central Bank of Sri Lanka Governor and Ministry of Finance Secretary

Wednesday, 13 April 2022 00:00 - - {{hitsCtrl.values.hits}}

We, Ceylon Institute of Builders (CIOB), are a premier long-standing association for Building professionals in Sri Lanka. Our institute which was established in 1961 has been contributing actively towards the development of the Sri Lankan construction industry in raising its professional standards. The membership consists of Architects, Engineers, Quantity Surveyors, Valuation Professionals, Builders, Construction companies, other stake holders connected to the Construction Industry and similar allied professionals who work to inspire, encourage, educate and train students, builders and professionals in the country.

The Construction Industry is one of the largest industries in Sri Lanka, which has contributed approx. 9.6% to Sri Lanka’s GDP and employs in/directly over one million people. As such, CIOB requests the newly appointed team to take the best use out of the Construction Industry to help the country at this critical junction and consider recent proposals given by the Industry to revive Sri Lankan Construction: They included:

1) Immediate action to be taken – each day that contractors work, they are losing and descending further into debt. Therefore, we decided to temporarily halt all projects, for a short period and re-assess our projects and ways of working. During this time outstanding bills can be settled and balance work can be resumed according to a Cost-plus system. If the client cannot afford it, we should reduce the scope of work or instead of abandoning the project, complete projects up to a point that the structure/building is useable or operational.

2) Advise banks not to encash bonds and guarantees during this period.

3) Forex problem, Material shortage and Price hike – to negotiate a specific credit line with India and China to import construction-related materials.

4) Abandoned projects to be completed, so that those buildings can be put to use and operation.

5) New projects – Only award necessary projects. Before awarding, ensure that there is a pre-set financial agreement so that contractors’ cash flow is not disrupted.

6) Internal issues – officers and personnel involved in the approval process should be reasonable and efficient. A drastic change should take place here, to reduce the dragging of projects for extended periods of time.

Each member of the newly appointed team, The Minister of Finance, Central Bank of Sri Lanka Governor and Ministry of Finance Secretary, has experience and knowledge of the Contractors distress and issues in the Industry; we especially hope that our concerns are heard so the Constriction Industry can contribute our maximum to the GDP. We wish this team can definitely revive the Sri Lankan Economy and the Construction Economy.