2 weeks Ago By malinga
During the first three quarters of 2024, (January to September 2024) the construction industry recorded satisfactory positive growths of 14.2%, 15.5% and 23.
8% respectively. This is a strong indication that the country has overcome the recession the industry faced during 2020 – 2023,” said Secretary General, Chamber of Construction Industry Sri Lanka, Eng. Nissanka Wijeratne.
(PICTURED) “However, to place the country on a trajectory of rapid economic growth and be in a position to settle the foreign loans confidently without further borrowing, the Government has to take drastic policy measures, learning from the mistakes in the past.” He also suggested that Projects above Rs. 200 million in value should commence only after a proper feasibility study is undertaken.
To ensure this a National Planning Commission (NPC) similar to that in India, should be established and approval of the NPC should be mandatory for all projects exceeding Rs. 150 million. At present there are widespread violations of the Government Procurement Guidelines.
“Procurement should be only on competitive bids on BOQ’s based on completed designs & documentation, to ensure timely completion and to minimize cost overruns.” “There shall be no unsolicited proposals considered. Procurement action should commence only if adequate funds have been allocated in the Budget or secured.
Implement the proposal of the Presidential Commission on Simplification of Laws & Existing Regulations to ensure the issue of development permits within 3 weeks by amending the UDA Act to establish a statutory committee with time limits for granting these permits.” “As a more effective solution steps should be taken to introduce a fully on-line he also suggested that a Code of Ethics should be adopted and applicable to all stakeholders of the infrastructure & buildings development process. Already such a code has been developed by the Construction Industry Development Authority (CIDA), which can be adopted as a regulation.
” The CCI also opined that housing and apartment developments should be exempted from turnover taxes as such taxes will be an additional cost to the individual buyers of these units. Another suggestion made by the CCI to further develop the industry was to introduce a housing loan scheme at a concessionary interest rate of 5% repayable over 40 years to the first-time home builders, similar to the two generations home loan schemes in Europe. The Government should also select 10 proven major contractors, in consultation with the Chamber of Construction Industry of Sri Lanka and facilitate necessary bank guarantees in US$ for one contract each to these companies to undertake works contracts abroad.
“Each of these major companies shall award sub contracts to 2 local companies, so that through this process 30 local companies will venture on overseas work. Similarly, to promote export of consultancy services by undertaking consultancy contracts abroad, the Government should select 15 proven consultancy firms registered with CIDA in consultation with the relevant professional institute and facilitate necessary bank guarantees and professional indemnity policies in US$ to these firms to undertake consultancy contracts abroad.” He also suggested that the government must aggressively look to harness the full potential of local graphite, rock phosphate and mineral sands deposits (in East coast and at Aruwakkalu, Puttalam) and woo high – tech investments to this.
“Enact the amendments to Construction Industry Development Act, No.33 of 2014 and the Regulations & Rules there under including the Regulations for Contract Adjudication that were discussed at the National Advisory Council on Construction since 2016, without further delay.” Establish a Standing Steering Committee on Construction (SSCC), chaired either by the President or the Secretary to the President, or a Senior Additional Secretary to the President to regularly monitor the development projects with the authority to give directions to solve any issues impeding progress.
This SSCC shall have suitable representatives from the construction industry, appointed in consultation with the Chamber of Construction Industry of Sri Lanka and shall meet at least once every month..
