Sri Lanka construction, housing market expands

Mar 29, 2011 (LBO) – Sri Lanka’s construction industry and housing market grew strongly in 2001 compared with the year before driven by infrastructure projects, resettlement after a war and increased borrowing. The construction sub sector of gross domestic product grew 9.3 percent in 2010 from a growth of 5.6 percent the previous year, the Department of Census & Statistics (DCS) said in a statement.

“This growth was supported by the introduction of new development projects, the large scale projects already in operation and rehabilitation and resettlement programmes, especially in Northern and Eastern provinces.”

The end of the island’s 30-year ethnic war in 2009 has revived economic activity and resulted in an infrastructure building boom.

Total cement production rose 16.7 percent to 3,749,005 metric tonnes in 2010 from 3,212,865 MT in 2009.

“The disbursement of loans for construction of houses, business premises, other buildings, and property developments increased by 39.6 percent during the year,” the statement said.