Labour costs rise sharply as SL grapples with shortage

Looking for a carpenter or a mason? Then prepare to fork out between Rs. 2,000 to Rs. 2500 per day but still struggle to find a suitable worker.

Sri Lanka is grappling with a huge labour crisis particularly in the constructi0n sector amidst a construction boom and calls to import labour. Even costly incentives like Maruti cars or 3- wheelers for skilled masons and carpenters haven’t attracted any takers, according to the Chamber of Construction Industry (CCI).

Wages in this sector are rising. According to the CCI, wage rates for a mason are Rs. 2000 per day, skilled carpenters, plumbers, electricians and bar benders – Rs. 2000- 2500, and labourers – Rs. 1500. Ten to 15 years ago these rates were Rs. 1250-1500 and Rs. 850, respectively.

Responding to questions from the Business Times, the CCI said that if the projects announced so far are to be completed as envisaged, the estimated total workforce required is one million com- pared to a current availability of 600,000. “As such it may be safe to assume a shortfall of at least 200,000,” the chamber said.

While Sri Lankans finding construction jobs abroad has impacted to some extent, a larger issue is that school leavers are reluctance to take construction jobs, looking for instead easier work like driving 3-wheelers, security and government jobs.

Asked about imported labour costs, the CCI said that a foreign skilled worker will cost an average Rs. 70,000 for 26 days work at eight hours per day while general ( imported) labour would be around Rs. 60,000.

“Companies prefer them as they will work 26 days without going for weddings, funerals, attending to sick relatives, etc. If the local labour is paid higher than now their attendance will drop further, as they will stay longer in their villages,” the chamber said, adding that while most workers prefer to work in sites closer to their homes, Colombo is suffering the brunt of the shortage.