Sri Lanka to ban foreign contractors from state projects

[Uguduwa]

ECONOMYNEXT- Sri Lanka will ban foreign contractors from competing for state project and give a slew of benefits for domestic construction companies, a government policy for for the next five years said.

Construction

Sri Lanka will “all state construction work for the domestic
construction firms” the policy document said.

The reduced competition could push up profits of construction firms and raise the cost of state procurement costs overall, analysts say.

Sri Lanka’s new administration had already halved income taxes for construction firms from 28 to 14 percent and also lifted value added tax from aparment and housing projects.

It is not clear how the ban will affect foreign tied funding projects.

Chinese projects in particular are funded with export-import bank financing for China-based contractors.

Some Sri Lankan firms which were sub-contractors to Chinese firms have got involved in joint ventures.

Small and medium subcontracting firms will be provided secure business through legislation, the new policy said.

Building construction approvals will be reduced to 3 weeks, by establishing a system that will enable all approvals to be obtained through one place over the internet, while urban construction will have to follow existing urban development plans.

Past loans taken by construction firms will be given grace periods and space to renegotiate, new policies showed.

A new system will be set up to manage relations between construction firms and banks via the central bank as well.

Existing licensing for procuring raw material for construction will be revised.

The government will set up an advisory committee of engineers and technologists to help construction firms obtain consultancy assistance, while also helping foster collaboration among the industry, architects association, Institute of Engineers and universities.

https://economynext.com/sri-lanka-to-ban-foreign-contractors-from-state-projects-36036/

 

[denel]

ECONOMYNEXT- Sri Lanka will ban foreign contractors from competing for state project and give a slew of benefits for domestic construction companies, a government policy for for the next five years said.

Construction

Sri Lanka will “all state construction work for the domestic
construction firms” the policy document said.

The reduced competition could push up profits of construction firms and raise the cost of state procurement costs overall, analysts say.

Sri Lanka’s new administration had already halved income taxes for construction firms from 28 to 14 percent and also lifted value added tax from aparment and housing projects.

It is not clear how the ban will affect foreign tied funding projects.

Chinese projects in particular are funded with export-import bank financing for China-based contractors.

Some Sri Lankan firms which were sub-contractors to Chinese firms have got involved in joint ventures.

Small and medium subcontracting firms will be provided secure business through legislation, the new policy said.

Building construction approvals will be reduced to 3 weeks, by establishing a system that will enable all approvals to be obtained through one place over the internet, while urban construction will have to follow existing urban development plans.

Past loans taken by construction firms will be given grace periods and space to renegotiate, new policies showed.

A new system will be set up to manage relations between construction firms and banks via the central bank as well.

Existing licensing for procuring raw material for construction will be revised.

The government will set up an advisory committee of engineers and technologists to help construction firms obtain consultancy assistance, while also helping foster collaboration among the industry, architects association, Institute of Engineers and universities.

https://economynext.com/sri-lanka-to-ban-foreign-contractors-from-state-projects-36036/

THe damage chinese contractors did is now being realised?

 

[Uguduwa]

THe damage chinese contractors did is now being realised?

of course. they also bring prisoners and make them work for free without any regard to health and safety standards which gives them a huge cost advantage. none of that shit anymore.

 

[PakAlp]

Good move by SriLanka. As long as quality and professionalism is there then domestic industry should be favoured.

 

[denel]

of course. they also bring prisoners and make them work for free without any regard to health and safety standards which gives them a huge cost advantage. none of that shit anymore.

there too? Here in neighbouring countries; they too were bringing in labour forces who were low level criminals.

 

[Uguduwa]

there too? Here in neighbouring countries; they too were bringing in labour forces who were low level criminals.

i feel sorry for the countries who cant or dont want to stand up for themselves. i did a low skilled job in a chinese company for a while. workers are pretty much treated like slaves even the chinese workers themselves. even though it was in germany. never again!!!