• CCI says pandemic, crisis-related delay claims remain uncertified
• Certified dues from foreign-funded projects stand at Rs. 60 b as of end-2024
• Contractors cite costs of site maintenance, guarantees, insurance during delays
• Industry alleges indecision among ministries is stalling settlement

The Government is yet to make a decision on approximately Rs. 200 billion in claims submitted by the local construction industry for expenses incurred due to project delays caused by the Covid-19 pandemic and the economic crisis, according to the Chamber of Construction Industry of Sri Lanka (CCI).

Speaking to The Sunday Morning Business, CCI Chief Executive Officer (CEO)/Secretary General Eng. Nissanka N. Wijeratne revealed that while the certified payments for locally-funded Government projects that had been delayed due to the economic crisis had been largely settled, the payments due to the construction industry in respect of work done under foreign-funded Government projects remained largely outstanding.

He claimed that as of end-2024, approximately Rs. 60 billion in certified outstanding payments was owed to the local construction industry under foreign-funded projects.

Elaborating on the outstanding payments for foreign-funded projects, Wijeratne said: “Part of it has been settled already. For the Asian Development Bank (ADB) projects, they reimbursed the money.”

However, he alleged that the Government had not certified any of the claims submitted by contractors for expenses incurred due to project delays arising from the Covid-19 pandemic and the economic crisis, in respect of both foreign-funded and locally-funded projects.

“During the Covid-19 pandemic and economic crisis, there were restrictions, materials were not available, and payments did not come in on time. As a result, projects were delayed, but the contractor had to maintain the sites and security. 

“They were also forced to extend bank guarantees and insurance policies. All contractors have made claims for these periods, but they have still not been certified by the various technical committees and tender boards,” Wijeratne claimed.

He revealed that according to information received from their members, the total claims submitted by the construction industry for expenses arising from project delays amounted to approximately Rs. 200 billion.

The CCI CEO charged that the delay in certifying these claims was due to indecision among decision-makers across various ministries.