Sri Lanka’s economic crisis and investor policy changes with each government that comes to power, have made the international investors less confident to invest in the country, The Daily Morning Business learnt.
Speaking to The Daily Morning Business, Immediate Past President of Chamber of Construction Industry (CCI) Engineer Major Ranjith Gunatilleke said: “There are no drastic changes taking place in the construction industry. Although we see very little improvement which is not enough for the industry. My only hope is that once we have a stable government, the construction sector will pick up.”
Moreover he added that there are interested international investors, but they are waiting till the elections and the Government is reunited.
However, the Cabinet decision paper issued on 27 November reported that the Asian Development Bank (ADB) has agreed to offer a loan of $ 60 million for the completion of the projects under the Integrated Road Investment Programme.
According to Gunatilleke, the Government “should not restart unworkable projects”. Instead they should use the money effectively for the public benefit whether these projects are necessary or not.
For instance, every government institute in Colombo has an auditorium where they spend a lot of money for auditorium interiors, decorations, air conditioners and audio systems while only 5% of auditoriums are utilised.
The Daily Morning Business also contacted Nawaloka Construction Company Director/CEO Kalana Alwis in this regard. He said that most of the industrial experts are moving out of the country since the Government is not taking any initiatives for the growth of the construction sector.
Moreover, the Sri Lankan construction companies working with international banks, as a long-term customers, have a possibility of getting international contracts since they receive a bank guarantee and a performance bond from the bank whereas the other construction companies who are stuck with the Sri Lankan banks have a dull future, Alwis elaborated.
“Currently, most of the companies are in line trying to get international contracts which is not an easy task to achieve,” he noted.
source: the morning
