Finance Industry Analysis

Sri Lankan Construction Sector Receives Payment Relief and Hope for Reform

The Sri Lankan construction sector has been facing challenges due to the economic crisis and the COVID-19 pandemic. In a positive development, the Ministry of Urban Development and Housing has addressed one of these concerns by settling over Rs. 12.5 billion in outstanding payments.

This financial relief is expected to provide some much-needed breathing room for construction companies. It’s a sign of the government acknowledging the difficulties faced by the industry.

However, the Ministry isn’t stopping there. Recognizing the need for a more sustainable solution, Minister Prasanna Ranatunage has taken the initiative to present a special Cabinet paper focused on resolving the current issues plaguing the construction sector.

To ensure a comprehensive approach, a high-level committee has been formed by the Ministry to prepare this Cabinet paper. This committee, likely consisting of industry experts and government officials, will work together to identify and propose solutions for the various challenges faced by the construction sector.

While the details of the Cabinet paper remain to be seen, this move signifies a positive step towards addressing the underlying problems within the Sri Lankan construction industry.

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