• Only 25% of 2025 Budget allocation for capital development utilised
• Unlikely to hit Rs. 300 b mark if same pattern continues
• CCI proposal to coordinate reconstruction drive

The lack of initiative by public service officers in kickstarting construction projects could hinder the anticipated turnaround of Sri Lanka’s construction industry, despite the favourable conditions created by the increased capital expenditure in the 2026 Budget and anticipated reconstruction efforts following Cyclone Ditwah.

Speaking to The Sunday Morning Business, Chamber of Construction Industry of Sri Lanka (CCI) Secretary General/CEO Eng. Nissanka N. Wijeratne stated that on paper, both the capital expenditure allocated under the 2026 Budget and the reconstruction drive anticipated in the aftermath of Cyclone Ditwah boded well for ushering in a turnaround in Sri Lanka’s embattled construction industry.

“There should be a turnaround because there is a lot of reconstruction work required. The cyclone damage is more than the damage caused by the 2004 tsunami. Therefore, there is a lot of work to be done,” he stated.

However, he cautioned that such expectations should be tempered, given the public service’s failure to take the initiative in promptly kickstarting projects. He noted that although the 2025 Budget had allocated Rs. 1,200 billion for capital development, only around 25% of this amount had actually been utilised during the year.

He added that while the 2026 Budget proposed Rs. 1,600 billion for capital expenditure, if the same pattern continued, it would be unrealistic to expect more than Rs. 300 billion worth of work to be completed.

Wijeratne claimed that public service officers on technical evaluation committees and tender boards were acting overly cautiously due to the current political climate, resulting in project delays.

He added that the process had been further hampered by a lack of experienced professionals serving on these committees. To address this, he revealed that the CCI had proposed nominating some experienced former public service officers.

Wijeratne further revealed that the CCI had proposed an overarching mechanism to coordinate the reconstruction drive, noting that the Rebuilding Sri Lanka Fund Management Committee, appointed by the Government and composed of businessmen, would be effective only for fundraising purposes and did not have the authority or power to implement reconstruction efforts.

Accordingly, Wijeratne called for the establishment of a taskforce composed of ministry secretaries and senior officers of the line ministries and experienced professionals to implement the reconstruction drive.