The construction sector accounted for nearly 10% of the GDP. The sector is contracting for the last three quartets in raw. The banking sector loans and advance exposure is around 20%. Unsettle bills by the government initialized projects, and skyrocketing TOD interest rates on bank facilities are creating multiple issues in the industry, experts warn.
As the economic crisis worsened, the government halted construction projects without settling the contractors’ bills. According to the industry stakeholders, the total amount due is over LKR.130 Bn, while the contractors owe the banks around LKR200 Bn - Daily Mirror.