CCI highlights key issues faced by local construction industry
Key issues of the local construction sector were highlighted by the Chamber of Construction Industry Sri Lanka (CCI) at a recent media briefing held to announce ‘Build Sri Lanka’ Housing and Construction Exhibition 2018, set to take place from May 18-20 at the BMICH.
One of the major problems faced by the construction industry at present is the shortage of workers and technical officers, according to CCI Ceo/secretary General Eng. Nissanka Wijeratne.
“This impedes the development work. From my estimates, the shortfall in construction workforce is about 350,000, and the supply is insufficient to cater to this. The problem is that our school leavers dislike getting a vocational training and engaging in the construction sector,” said Wijeratne.
“Our youth prefer jobs in the state sector and also less strenuous work in a private sector such as three-wheel driving and private security, even though earning as a skilled carpenter or mason could be more profitable than that of a senior executive in a government department. They consider construction work to be more difficult and low in social standing,” he added.
Proposals have been made to the government to bring workers from neighbouring countries such as Nepal and Myanmar to cater to this shortage, and consequently the government has given the approval to the chamber to recruit 2,500 construction workers from the said countries, said Wijeratne.
The workers will be supplied only to the member companies of the chamber, and once the quota is finished, the chamber will get approvals for more workers. Nearly 500 workers will arrive before the end of March, 2018. He went on to say that another issue concerning the industry is the signing of free trade agreements (FTAS) with various countries. “Already, a FTA has been entered into with Singapore and there are plans to sign similar agreements with China, India and few other countries.” Wijeratne went on to say that as the voice of the construction industry, the chamber has been “repeatedly informing the government that before opening the construction sector to foreign companies, we should have a proper regulatory framework to protect the domestic industry.”
He said for the regulatory framework, it is very important to have nearly 20 regulations gazetted under No.33 of the Construction Industry Development Authority Act 2014 before entering into FTAS.
Wijeratne noted that in spite of repeated representations by the chamber and acceptance during negotiations, only five regulations have been gazetted to-date.
“Another major concern of the construction industry is the foreign companies competing with local companies to win tenders projects that are fully funded locally,” Wijeratne added.
The chamber, he said, has no objection to foreign companies undertaking projects, but noted the trend of foreign companies trying to undertake locally-funded projects could cause the local construction industry to collapse.
“You have to understand that foreign companies will be here only when times are good and peaceful, but during times of turbulence, it is only the local companies who will remain here, even to undertake the essential work,” stressed Wijeratne.