Large Scale Infrastructure
The massive infrastructure development drive currently in progress is expected to support the country to maintain a high and sustainable growth in the medium and long term. Timely development of economic infrastructure will help to increase economic efficiency while expanding the production capacity of the economy, facilitate productivity enhancement and reduction of regional disparity.
The economic infrastructure development program of the government focused on all areas of infrastructure; development of roads, water supply and sanitation, ports and aviation, transport, housing and urban development, establishment of industrial zones, hospitals and warehousing and logistic centers etc.
The value added of construction activities rebounded during the year 2016 recording a substantial growth of 15 per cent recovering from 3 per cent contraction recorded in 2015. Large scale construction projects such as Colombo International Financial City, extension of Southern Expressway, Phase III of Colombo Outer Circular Highway project and emerging condominium apartments largely contributed to the expansion in construction activities. This growth was reflected in the significant increase in cement production and its imports which collectively grew by 25 percent in 2016 compared to 6 per cent growth recorded in 2015. Accordingly, both local production of cement as well as imports of cement increased substantially by 18 percent and 30 per cent, respectively, in 2016.
Meanwhile, investment goods and building materials imports volume indices increased by 20.0 per cent and 23 per cent, respectively,in 2016 indicating the positive developments in construction activities. Furthermore, credit granted by Licensed Commercial Banks (LCBs)to the private sector for construction activities significantly increased by 27 per cent in 2016 on top of 36 per cent growth recorded in 2015. Moreover, reflecting the development in housing construction activities, the credit granted by LCBs for personal housing construction activities also increased by 27 per cent in 2016. Further, the number of completed condominium units certified by the Condominium Development Authority increased by 25 per cent in 2016 recovering from 30 per cent contraction in 2015.
The Government has re-emphasized the huge potential for the construction industry anticipating a significant grow in coming years. With the strong government support, the construction industry in the country has been identified as a sector with a great potential for foreign investments.
Investment in the Allied and / Ancillary sub-sectors:
- Housing and Property Development
- Shopping and Office Complex
- Mixed Development Projects
- Hospital Services and Medical Services
- Exhibition Centers
- Industrial Parks
- Construction of Highways and Railways
- Port and Airport