Developments in the construction sector will expand to most regions in the country, says Athula Priyantha Galagoda, Chairman of the National Construction Association of Sri Lanka (NCASL). Expressing his views to the BMD, Mr. Galagoda says that the key concern is that the construction industry should develop without endangering the biodiversity of location and should go along with the animals, trees and all other natural resources of the area.
Following are excerpts of the interview
How does the Construction industry affect the environment?
The construction boom after the end of civil conflict in 2009, is causing damage to the environment. Our natural environment is rapidly dwindling. In many areas in the outstations, the buildings are constructed not at higher levels, but at very low levels. I hope this trend will change in the future; if buildings that damage the environment continue to be constructed Sri Lanka also will become a desert. No strategic policy has yet been implemented on this issue, although a number of discussions have taken place. The key concern is that the
construction industry should develop without endangering the biodiversity of location and should go along with the animals, trees and all other natural resources of the area. In other countries, by now there are concepts to construct Green Buildings where there should be natural resources around the construction. A good example in Sri Lanka is the Kandalama Hotel.
What are the issues/problems in the construction industry?
The biggest is labour. Also most constructions are carried out with the assistance of foreign investors. In Colombo of course, there is a huge
development in the construction sector, and a huge number of Sri Lankans are engaged in this sector at all levels. Another issue is the downward trend in youth joining the labour force after their studies. Many youth, soon after they leave school after their O/Levels,
looking for quick and easy money become three-wheeler drivers. This actually has a big impact but has not been raised at a higher or national levelyet. Many are of the view that if three-wheeler drivers’ age limit is increased to at least 45 years, the semi-skilled and unskilled labour
entering the construction sector and other sectors of the economy would improve. Greater concern for quality standards when importing construction equipment to Sri Lanka is necessary. For instance, there are three quality segments for water taps. If the consumer is made aware of this, they could buy a more durable tap even if it costs more. Also in directing youth to the construction sector, especially training
schemes is a challenge. We have a membership of about 3000 in the construction sector. In SEDA (Society for Empowering
Differently Abled), there are about 6,000.
A big challenge is to direct youth to our major projects. For instance, the Megapolis Project is not only in Colombo, but in Anuradhapura and Kandy too. A Rs. 10,000 million project will begin in Anuradhapura and we have to source labour for such projects.
The sewerage lines are another issue, which until recently were only in Colombo. In other areas, there were sceptic tanks. Recently
a sewerage line project estimated at Rs. 48 billion by a Chinese company began in Kandy and is now expanding to other cities as
well.
Condominium dwellings highly popular and in great demand in Colombo, didn’t really take off in Kandy until the sewage system
developed.
How do you see the progress in the construction industry?
The industry will definitely develop and all discussions held on the sector guarantee the progress of this sector. However, one issue is the frequent change of the Minister in charge of Construction. If the Construction Minister holds the position for at least five years,
then he can implement schemes and regulations for the industry to develop.
For example, with the change of government, the Megapolis project was halted for 21 days. The government had to pay Rs. 500 million per day. If foreign investors come, it would be a huge project.
Today, one of the biggest issues in the construction sector is sand. There are many sand suppliers and many problems are created. A cube in Colombo is Rs. 18,000. However, at its origin it is priced at only Rs. 1,800 and the high price of Rs. 18,000 is due to payments done to middlemen in the business. It can be regulated, but there seems to be a general disinterest in addressing this issue and taking remedial action. As there are no proper procedures, the price of sand is going up daily. They get the sand from areas like Kerawalapitiya, but now most of that filling is completed and now they are looking for investors.
What is the direct involvement of NCASL with the construction sector?
There are about 15 major companies operating in the sector. There are a number of smaller players all over the island. Our purpose
is to identify the problems in the construction sector and propose schemes and suggestions to make the construction industry a
success.
That is our mission and those involved in the construction sector come to us about their issues and problems. We conduct seminars
and meetings, discuss issues, identify their problems and forward them to the government. Our institution is invited to attend about 15 meetings per month. About seven are the important ones. The legislation for the Construction sector was implemented in 1988 during the time of President Ranasinghe Premadasa. The legislation stipulates how a construction project is handed over to a local or a foreign company. Accordingly, the percentage a foreigner could get is 40 and a local 60. There is no need to introduce new schemes. If we implement the 1988 schedule, we will be able to solve a lot of big problems. Recently, a seven storey building crashed in Wellawatta. However, permission has been granted for only two stories for this building. It was questioned as to whether we gave approvals for the building. Although they have got the permission, they had done it without proper standards. Thereafter, there were many such debacles in many areas such as Jaffna and the latest tragedy was in Dambulla. With regard to the Dambulla incident the construction had been done by a mason without the input of an engineer on the shopowner’s request. A draft for a parliamentary act to regulate these issues has already received Board approval and we hope this Act will be passed soon.
The NCASL, in 1988, was the Association of Construction Contractors of Sri Lanka (ACCSL). Thereafter, it was titled the
National Construction Association of Sri Lanka (NCASL). The SEDA at that time was titled ICTAD, and when the
registration for ICTAD is taken, we had to enter the number of our membership. It was removed in 1994, with the intention of handing over construction to Samurdhi, Grama Sanwardhana Schemes of AG offices, etc. We have discussed this with our Subject Minister, Sajith
Premadasa, who has given us the assurance that it would be rectified in parliament.
One purpose is that when there is a licence, we can maintain standards. SEDA also has a big responsibility that when NCASL
handles this sector, we can definitely maintain standards.
Your views on people coming from abroad as construction workers?
This situation is prevalent in Colombo at present but could expand to other regions too. The main reason for this situation is the dearth of labour in our market, which results in labour being hired from China, Indonesia and Bangladesh. The other reason is Chinese companies who have invested in Sri Lanka, funded projects and have agreements with the government. As such, it is the government that has to take
decisions on those issues. It is also true that local contractors could develop more. There are many local companies in the construction industry, some handling key projects in the city. Locals are the main shareholders of some of the foreign companies. For example, the
Sanken is a Japanese company with a Sri Lankan shareholding. New ventures with creativity and quality are coming into the country and that’s a positive move. However, if the local contractors are minimized or discouraged, it
would be a problem. These are issues the government should take into consideration in steering the construction industry
forward into its next phase.
What are the solutions for the shortage of qualified workers?
There is a problem of titles in the profession. Construction employees (or masons) were described as ‘bass’ in Sinhalese, and we have changed that. That alone is not enough. Looking at the future, the trade came from father to son. When the father is a farmer,
the son also becomes a famer. Those traditions have now changed. However, this issue should be controlled with a certain regulatory network. Another issue that needs to be highlighted is the fact that some constructions are done directly by ‘basses,/ masons who actually do the work. The contractors are left out for reasons like evasions of taxes, thereby causing serious harm or damage to the building.
In the outstations, the responsibility of the entire construction is handed over to masons, who delay with the construction not keeping to schedules and deadlines. There are many who face these issues. People complain to us on these issues and as an organization, we have to get involved in addressing them. To keep people aware of these issues, we will conduct a massive publicity programme at our exhibition this
year. There are massive apartments being built in Colombo.
Can local contractors also undertake such projects?
Yes, our local contractors too could build these condominiums and big buildings. Most constructions are given to foreign contractors as many investors are from abroad. I must also mention that there are certain veterans in Sri Lanka who undertake building contracts
abroad in countries like Myanmar, Indonesia, etc. Local contractors who undertake work in other countries find that the work environment/conditions are better overseas and bring better profits.
How do you see the future management of our construction industry?
In the near future, it is likely that around 75 per cent of the construction companies will be managed by the children of the current owners. What is truly remarkable and an encouraging fact is that the next generation are professionals in that sector. In the days when the companies were established, there was no such professional training aspect. As such, what I see is that these sons and daughters of construction company owners will continue to engage in the construction sector as professionals making use of technology and other modern aspects.
What is your advice to those planning to enter the construction sector?
When this institution was initiated, there was a staff of only about 25 staff. Today, it has spread to a number of regions with a total staff of about 3000. Our service has become a necessity to the construction industry. Our task is to continuously improve and offer more advanced services, following in the footsteps of veterans in developed countries. On our way forward to development, we have to protect our environment also. We have to learn from the developments in countries like Singapore and Dubai. In Singapore even drinking
water was imported while Sri Lanka has an abundance of natural resources. Dubai was once a desert, but today, it is a gold mine for foreign investors. The lighting scheme in the famous Dubai Tower attracts millions of tourists.
To achieve this level of development a proper mechanism is essential between the authorities and investors. Also there should be proper standards.
What is your view on the development of the construction industry?
The construction industry will definitely develop. Now we are constructing flyovers but in many other countries, the flyovers have reached the end level. In another five year’s time we will have to rebuild them. I think we should go for new concepts. In this sector what I see is that it is overhead bridges and roads that should be built, as when they are built on land, it causes immense damage to the natural environment.
A good example is Warakapola. People there say that there has been an environmental damage to the area. Rubber estates in that area are gone now.
Even when paying compensation for those who have lost their lands due to new developments, it should be done properly. The main reason for the protests by the people in those areas is that correct decisions have not been taken. The affected people are not given proper compensation.