Sri Lanka allocates Rs. 2 trillion for construction in 2027 budget
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Sri Lanka has allocated two trillion rupees as government capital expenditure for development activities, including the construction sector, in the 2027 budget.
The sector is facing immense challenges from economic instability, rising construction costs, high loan costs, exchange rate fluctuations, tax policy revisions, skilled labor shortages, and supply chain disruptions. These conditions have altered the economic basis of projects planned under different market conditions.
Despite this, confidence remains strong in the sector's long-term future, as it generates employment, strengthens allied industries, and creates national assets. A key challenge is maintaining affordable consumer prices as material and labor costs rise. The sector's resilience during this period is expected to transform into sustainable economic growth.
