The construction industry in Sri Lanka is facing a severe crisis due to the sharp increase in the prices of construction materials, according to Susantha Liyanarachchi, Chairman of the Sri Lanka Construction Association.

Speaking to the media , Liyanarachchi said the price of a ton of steel has risen by Rs. 18,000, while metal prices have increased from Rs. 8,600 to around Rs. 11,000 including transport costs. He also warned that the price of a cube of sand, currently about Rs. 37,500, could rise to nearly Rs. 46,000 in the near future.

He noted that rising fuel prices have contributed to the increase in material costs, but emphasized that the lack of government intervention to regulate prices poses a serious threat to the industry. He warned that a collapse of the construction sector, which supports a large number of livelihoods, could significantly impact the country’s Gross Domestic Product (GDP).

Liyanarachchi further claimed that the recent 36 percent increase in fuel prices in Sri Lanka was not solely due to the Middle East conflict, but also linked to losses from the importation of low-quality coal.

Comparing global trends, he said Sri Lanka recorded the highest fuel price increase at 36 percent, while other countries saw lower rises, including around 2 percent in India, 28 percent in Canada, 24 percent in Pakistan, 22 percent in Singapore, 13 percent in the United States, 12 percent in New Zealand, and about 10 percent in Turkey.

“Only Sri Lanka experienced a significant fuel price hike, largely due to issues related to coal,” Liyanarachchi said.