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raised last week by Chamber of Construction Industry President Dr. Surath Wickramasinghe, including a lack of continuity of work for construction companies, skills shortages, scarcity of raw materials, and fair distribution contracts, particularly in terms of foreign construction companies, Premadasa emphasised the need for the creation of a system of decision making which would provide a level playing field to all.
“These are multifaceted issues which cannot be given solutions by a mere speech by the Minister in charge. What I will do is propose a continuous and persistent dialogue with the CCI. My Ministry officials will listen to you with an open mind and we will not hesitate to remove the various obstacles you face.
“I shall ensure that my Ministry officials inculcate specialist opinions in the construction industry to ensure that we design and formulate a path that ensures the prosperity and growth of your industry. We will ensure that the issues that you mentioned will undergo surgical, scientific analysis and we will look at various success stories around the world and the attributes of those policies too will be introduced into our National Construction Policy,” Premadasa said, speaking at the pre-launch of the ‘Build Sri Lanka’ exhibition scheduled for late May.
Levelling harsh criticism against the decision-making process of the previous regime, Premadasa went on to advocate the virtues of a free-market system with minimal State intervention, both for the construction industry and wider economic policy in general.
“If we go back in time to the recent past, major decision-making pertaining to national issues was primarily carried out in an ad-hoc, knee-jerk manner. What we had in the previous administration was not a freemarket system, neither was it a Keynesian system or a mixed system. What we had was a system where economic policy and decision making was highly hierarchical, utterly elitist, and completely stubborn. Major decisions were taken devoid of proper, rational discussions.
“I’m happy to say we’ve moved away from that and today we believe that a free-market is an essential pre-requisite to the creation of wealth in our country; however we’re cognisant of the fact that free-markets have their short comings. Those shortcomings should and ought to be addressed by the Government to ensure that the shocks and disturbances created by the market mechanism are cushioned and the Government intervenes only to ensure that the fruits of prosperity, progress and growth are equitably distributed with social justice in mind.”
Among examples of success stories which could influence the country’s own National Policy on Construction, Premadasa cited the Builders Finance Fund in the United Kingdom and the Smart Cities concept propounded by the Modi administration in India.
Cement price dip won’t be steep as Rs. 90Contrary to Finance Minister Ravi Karunanayake’s assumption that cement prices would come down by as much as Rs. 90 per bag following the Interim Budget move, the dip won’t be as steep but less. A cement industry spokesperson said that imports from India and Pakistan were duty free as part of the Free Trade Agreement and the removal of 7.5% duty would be applicable for imports sourced from other countries especially Malaysia, Indonesia and Vietnam. The spokesperson said the cost of cement from these countries was Rs. 60 to 80 (per bag) higher than imports from India and Pakistan. “With the removal of import duty of 7.5%, the cost gap of cement will reduced by Rs. 30 to 40 (per bag),” the spokesperson added. However, the Interim Budget move will improve competition improving competition vis-à-vis those sourced from India and Pakistan, although the two latter countries will continue to maintain a cost advantage due to their existing FTAs with Sri Lanka. Cement industry welcomes Interim Budget |
