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with the assistance of the respective State agencies.
In addition, if the housing projects are designed in a group of clusters, the implementation will be financially more viable as providing other social aspects such as education, health including safe drinking water, recreation, commercial, agriculture, could be designed within easy access and reach to a larger community.
Alternatively, the housing layouts and the infrastructure services can be provided by your Ministry, and the construction of the individual houses could be undertaken by the respective recipients of the houses on a self-help method, providing their own labour. The building materials/components can be provided by the Ministry on a subsidised basis and the unit design and technical assistance provided by the Ministry.
CCI is in a position to mobilise our members to assist the Ministry of Housing and Samurdhi in the preparation of a National Housing Program, covering the whole country, on these lines. However, it would be necessary to obtain the facilitation of the local government authorities, State agencies and the private sector. The details of how such a program could be made viable for both the public and the private sectors, could be discussed at your convenience.
Construction industry and the new economy
The CCI has been studying very carefully on how the industry could be more competitive, particularly, in regard to the rural housing sector.
One way to lower the cost of construction will be to provide tax incentives for the fabrication of building components in concrete such as beams, purlins, doors, windows, roofing sheets, etc., as import substitution for timber.
In addition, tax incentives for local manufacturers of septic tanks, water tanks, and PVC fittings, glass, electrical wiring, aluminium products and fittings will prevent the dumping of these items from overseas. This concept will no doubt save valuable foreign exchange and fast track the construction of houses. The assembly units can be located in four or five strategic locations to minimise transport and other costs.
With this concept, it would be possible to provide building materials/components at an affordable prices to facilitate the needs of the rural population. The machinery for the fabrication of the building components can be obtained from China or the Eastern European countries.
Alternatively, the University of Moratuwa, National Engineering Research and Development Centre of Sri Lanka, (NERD) and even the State Engineering Corporation may have done research on materials for low cost rural houses.
Collaboration with the Ministry
The formulation of the National Policy on Construction has so far not been introduced. Our Chamber would like to extend our support to you to expedite this matter, as we did for the Construction Industry Act.
Overseas construction companies
Any overseas construction company intending to undertake any construction projects in Sri Lanka should tie up with an ICTAD registered local counterpart/s, with the local counterpart/s assigned with a minimum of 40% of the volume of work. This should be made mandatory for such operations.
On the other hand, if the projects are locally funded, the lead consultant and the contractor should be Local, and as the case may be should be Sri Lankan and they should be given the freedom to tie up with a foreign counterpart depending on the expertise required.
Shortage of construction skills
The construction industry is facing an acute shortage of skilled labour, mainly arising due to:
Available skilled staff/labour seeking overseas assignments, especially in the Middle East for better prospects as the continuity of their work in Sri Lanka is not assured.
Most school leavers opting for more comfortable (even less paid) jobs thus avoiding jobs in the construction industry.
Hence it is necessary to
Embark on a promotional program to attract youth/school leavers in consultation with the industry stakeholders. Construction industry skills could be introduced in the school curriculum at GCE Ordinary Level.
Presently there are a lot of impediments, when obtaining licenses and permits for aggregate mining, sourcing and supplying earth, sand and other materials required for building products. A smooth supply chain will permit reduction in the cost of construction by eliminating red tape.
In addition, there is a depletion in the availability of natural resources due to increasing construction activities over the past 35 years. Hence, new sources of materials and alternate methods of construction with less use of natural resources, are needed to meet the future demand.
Plant and machinery hiring facility to be improved country wide. Introduction of plant hire pools/capacities in every district will facilitate fast tracking and access to these facilities by the SME sector.
Our Chamber requests a continuous dialogue with the Minister to resolve construction industry issues that arise from time to time, and are prepared at all times to offer its services to proactively participate in all fora related to the construction industry.
Now that the Interim Cabinet has decided to continue with the Port City Project, CCI very strongly advices against the use of rock boulders from different parts of the country to construct the sea wall and the break water. If so, rock will be available for future use for the construction industry. In the Middle East, concrete boulders are used to construct the sea wall, break water, etc. As the volume of rock to be used is enormous, the Chinese contractors should be advised to use concrete boulders similar to what was used at the Colombo South Harbour accordingly.
Furthermore, the project should ensure the participation of the local construction industry professionals and contractors in a positive manner to promote the transfer of technology to the local industry.
