New Legislation to Boost Construction Sector amid Economic Recovery Efforts
August 23, Colombo (LNW): President Ranil Wickremesinghe warned against renegotiating the country’s agreements with the International Monetary Fund (IMF), stating that doing so could reverse Sri Lanka’s recent economic gains and potentially lead to another economic collapse.
His comments came during a meeting with professionals from the development and construction sectors at the Water’s Edge Hotel in Battaramulla, themed “Constructing the Nation’s tomorrow.”
Wickremesinghe emphasized the need for a stable economy to drive national progress, noting that the government had already secured favorable terms from international financial institutions like the IMF, Asian Development Bank, World Bank, and Exim Bank of China, among others. He argued that further government intervention was unnecessary.
The President highlighted the critical role of the construction and development sector in the country’s economic recovery. The sector, which had been severely affected by the suspension of foreign-funded projects during the economic crisis, has seen some relief through government measures like bank concessions and payment settlements to contractors.
Looking to the future, Wickremesinghe announced large-scale hotel development projects in Galle, Kandy, Colombo, and Trincomalee, as well as new investment zones in Bingiriya, Jaffna, and Hambantota.
He also updated the attendees on the Megapolis Development Plan, aimed at transforming Colombo, Galle, and Kandy into major urban centers.
In his address, Wickremesinghe stressed the interconnectedness of the challenges faced by the country, citing the compounded effects of pre-COVID fiscal measures and the global economic downturn triggered by the pandemic.
He reaffirmed his administration’s commitment to economic stabilization, citing the passage of the Economic Transformation Act, the Central Bank Act, and the Public Debt Management Act as foundational steps. The President expressed optimism about achieving a 5% annual growth rate by 2027.
State Minister for Technology Kanaka Herath also addressed the gathering, emphasizing the construction industry’s importance as a key driver of economic growth, contributing 7% to GDP and providing livelihoods for around 5 million people.
Despite the sector’s challenges, Herath credited the government’s bold decisions and steady leadership for the current economic stability.
During a panel discussion, President Wickremesinghe responded to questions from professionals in the construction industry, particularly regarding the potential repercussions of renegotiating with the IMF.
He warned that such actions could jeopardize the delicate agreements reached with international creditors, emphasizing the difficulty and complexity of renegotiating the established framework.
The event underscored the government’s commitment to supporting the construction sector as a vital component of Sri Lanka’s economic recovery and future growth.
