Local firms need to form consortiums to challenge foreign contractors’ entry into SL projects

Foreign construction companies, with larger resources than local firms, are taking away a large slice of the big -ticket Sri Lankan projects, which is a worrying issue, says Dr. Rohan Karunaratne, President - Ceylon Institute of Builders (CIOB).

Speaking at the media launch of a special Green Credit card by Hatton National Bank (HNB) to the members of the CIOB at the HNB auditorium last week, he said though the industry is thriving now and heavy growth is expected, the CIOB is concerned that almost all the large projects go to big foreign companies as they have enough resources such as material, finance and labour to win the tenders and get the contracts.

The CIOB is in constant dialogue with the government to break through this impasse to win some of these contracts and hoping to get together with large local companies to create consortiums in a bid to win at least some of these huge contracts out for which the benefits of the Green Corporate Credit Card would be of immense help, he added.

Construction industry growth was 9 per cent in 2009, rose to 21 per cent in 2012 but has dropped to 12 per cent now, he indicated. Construction industry growth is seen doubling in the next four to five years.

Roshantha Jayathunga, Head Cards, HNB said that while HNB is an innovative products’ bank, the Green Card is the first of its kind issued to a corporate entity. It is for the executives of CIOB members to purchase green construction material at discounted rates and also entails other facilities.

It is transparent and easy to monitor the transactions so that the finance departments of the companies can quickly reimburse the money spent on the Green Card, he indicated. There are special value additions like, a tie- up with Master Card International (MCI) for special International Airport Lounge Access to obtain facilities in more than 850 airport lounges around the world and HNB would obtain the membership for CIOB members, free of charge, he pointed out.

He indicated that in addition CIOB members have access to various discounts in selected cities worldwide that are identified by MCI. They are to tie up with green certified construction material suppliers in Sri Lanka under CIOB to obtain special discounts to CIOB members, he asserted. HNB looks at providing a structured tailor made retail banking facilities to cover personal loans, home loans, leasing facilities for the executive employee of the CIOB members.

Ms. Arosha Jayasundera, Directress, Asian Institute of Excellence, making a presentation on ‘Winning” indicated that young people in Sri Lanka are more attracted to three-wheeler driving business than to construction industry and women working in this industry is very low.

Hashitha Dinumpura, Electrical Engineer, JLanka Power and Energy (Pvt) Ltd, a large solar power solutions provider, spoke of the major advantages that are there in the use of solar power in the building construction and how far this technology would contribute in the green building concept.

Earlier Dr. Karunaratne said that the green building construction is the need for the hour as it has been internationally identified that there is as much as over 40 per cent environmental pollution by the construction industry and they are doing everything possible to mitigate the pollution by cutting down their waste which also represents a very high percentage.

He said that reducing waste is a must as it is found that Sri Lanka’s building construction cost is one of the highest in the region.

Construction industry growth is seen doubling in the next four to five years.