Although the increase in capital expenditure through the 2026 budget and the anticipated reconstruction work after Cyclone 'Ditwah' have created a favorable environment for Sri Lanka's construction industry, the Sri Lanka Chamber of Construction Industry states that the expected revival of the industry could be hampered due to the apathy of government officials in initiating projects.
Engineer Nissanka N. Wijeratne, Secretary General and CEO of the Chamber, points out that the necessary documented groundwork for a revival in the construction sector has been laid. He further stated that since the damage caused by Cyclone 'Ditwah' is greater than the damage caused by the 2004 Tsunami disaster, there is a need for a large-scale reconstruction process in the country.
However, Mr. Wijeratne warns that these hopes may not materialize due to the lack of proper initiative from public service officials in promptly commencing projects. Although the 2025 budget allocated LKR 1,200 billion for capital development projects, the Secretary General pointed out that only about 25% of that amount has been utilized.
Although LKR 1,600 billion has been proposed for capital expenditure in the 2026 budget, it is his opinion that if the current conduct of government officials continues, work worth over LKR 300 billion will not be completed. He further explained that a major reason for these delays is the cautious approach adopted by government officials in technical evaluation committees and tender boards amidst the prevailing political climate.
As there is a shortage of experienced professionals for these committees, the Chamber of Construction Industry has proposed appointing experienced former government officials as a solution. Furthermore, Engineer Nissanka Wijeratne emphasized that since the fund management committee, appointed by the government and composed of businessmen, is limited to fundraising only, a task force comprising Ministry Secretaries and senior officials should be established to direct reconstruction efforts.