🏗️ Sri Lanka Construction Sector Recovery Threatened by Unjustified Price Hikes

• Sector Overview: The construction industry showed encouraging recovery signs in 2025 due to macroeconomic stability, lower inflation, and stable exchange rates reducing material costs (e.g., steel, fuel). • Current Threats: This fragile recovery is under threat from rising fuel costs and global conflicts. However, a major concern is local market abuse, where suppliers utilize external shocks as a pretext for profiteering and inflating prices beyond reasonable margins. • Market Impact: Major material supplies operate in an oligopolistic market. Some critical items have seen price hikes of around 25% on existing stocks before new imports have even arrived. • Socio-Economic Fallout: Rising costs are driving up housing prices, rental rates, and taxpayer-funded infrastructure costs. This directly compromises affordable housing and delays critical reconstruction works for Ditwah-affected families due to insufficient forecasted budgets. • Call for Action: The Ceylon Institute of Builders urges the Government to intervene. Rather than heavy-handed controls, the public appeals for transparent pricing benchmarks, stronger competition policies, and reduced import barriers to curb anti-competitive practices while fairly recognizing genuine manufacturer cost increases (e.g., parity rates, cargo, and energy hikes).