Institute of Builders submits construction sector proposals for Budget 2026

Wednesday, 5 November 2025 00:25 - - {{hitsCtrl.values.hits}}

From left: Ceylon Institute of Builders Vice-President Ruwan De Silva, Housing, Construction and Water Supply Minister Dr. Susil Ranasinghe, Ceylon Institute of Builders President Dr. Rohan Karunaratne, Treasurer Ranji Hewage, and Secretary to the Ministry Chaminda Nuwan Thilakaratne

The Ceylon Institute of Builders (CIOB) recently handed over its Sri Lankan Construction Industry Budget Proposal 2026/2027 to the Ministry of Construction in the presence of the Minister, Deputy Minister, and Secretary to the Ministry.

The proposal outlines a comprehensive roadmap to revive and expand Sri Lanka’s construction sector, positioning it once again as a key driver of national growth. It calls for urgent policy intervention and financial relief to help the industry recover from six consecutive years of stagnation and liquidity crises.

According to the document, the construction sector aims to restore its contribution to 10% of Sri Lanka’s GDP, targeting a total industry turnover of Rs. 2.97 trillion (approximately $ 9.89 billion) in the upcoming years. The plan emphasises reviving stalled infrastructure projects, rebuilding SME capacity, and introducing concessional financing and debt restructuring mechanisms to stabilise contractor operations.

CIOB’s proposal highlights several core objectives:

• Restarting stalled national projects, including roads, hospitals, and housing schemes.

• Supporting SMEs, which currently face a 40% failure rate, through credit guarantees, lower taxes, and digitalisation support.

• Establishing an Infrastructure Fund and concessional loan schemes (≤6%) to reduce the sector’s dependence on high-interest borrowing.

• Creating new employment opportunities, targeting over 1.5 million direct jobs and safeguarding 20,000 current roles.

• Promoting exports and FDI through international construction investor forums.

• Enhancing research, innovation, and local material production to reduce import reliance.

The CIOB also proposes strong governance and transparency frameworks, including the formation of a National Steering Committee for Construction Projects and an independent Program Management Unit for project monitoring and accountability.

CIOB President Dr. Rohan Karunaratne said: “The construction sector is the engine that keeps Sri Lanka moving. This proposal offers a clear path to rebuild confidence, create jobs, and deliver long-term value to the economy.”

CIOB’s submission urges the Government to recognise the construction industry as a priority crisis-hit sector, enabling emergency financial support and immediate implementation of Cabinet-approved relief measures.

If adopted, the plan is expected to complete 60% of stalled projects, revive 3,000 SMEs, and strengthen Sri Lanka’s export capacity, moving the nation closer to a sustainable infrastructure-driven recovery.