Courtesy Adaderana

The governor of Central Bank of Sri Lanka (CBSL) says the construction sector is unlikely to see growth until the economy recovers.

Dr. Nandalal Weerasinghe made these remarks during an event held at the Sri Lanka Foundation Institute with the representatives of the construction sector.

Speaking further, he said the relative cost of construction in Sri Lanka, compared to India and other countries in the region, is way too high.

Stating that the domestic prices do not reflect the prices in the global market, the central bank governor said the customers are also paying an additional amount for the protection of the industry locally.

Due to the high cost, the private sector construction in the country is not developing because many people cannot afford it, Dr. Weerasinghe pointed out. It was already too high but has now increased to a different level. People’s income has to go up for them to afford that kind of housing.”

The central bank governor said the construction sector will have to wait for some time to see growth until the economy recovers and people are able to afford the high cost.

Dr. Weerasinghe said he is confident that the economy would stabilize by next year.