Being a key player, contributing in various supply chains from labour, raw material and manufacturing and one of the most significant employment providers in Sri Lanka, the construction industry contributes 7.1% to the GDP, employing over 600,000 workers.
Despite the global economic slowdown faced by the world across all industries, and the resulting dented optimism within the real estate and construction sector, the Colombo District Land Valuation Indicator (LVI) reported an overall 6.8% growth rate in the first half of 2021.
Challenges
The skies haven’t always been rosy. Dealing with the many hurdles that the pandemic has thrown at the global economy, the construction and real estate sector too has undergone stifling challenges that have caused many smaller players to drop out of the game.
Many others have developed a high risk “hit and run” approach with their projects due to the scarcity of resources which poses a significant threat to the safety and the wellbeing of their customers and the public in general.
But a handful of established players in the market have managed to hold down the fort during the most tumultuous years, understanding what less seasoned players do not – that quality and safety are not things that one can compromise, even at troubled times.
The Blue Ocean Group with its decade old experience and expertise garnered with iconic projects over the years, is one such entity that has withstood the test of these trying times, churning out one successful project after another amid these challenging years.
Like a number of other sectors, the real estate industry was not prepared for the wrath of the pandemic. However, following the second wave, the sector was better geared and showcased remarkable resilience. While any new projects were stalled due to the lack of resources and other limitations, the demand was higher.
Last year was a definite game changer for not only the real estate and construction sector, but the entire world in general. As the world’s largest vaccination drive gained momentum, the confidence among the public grew and the enthusiasm that followed in most sectors paved way for an encouraging boost. The financial year 2022-23 is now seen as the turnaround year for the construction industry.
The growth in the construction sector has mostly been portrayed in hotel and resort construction, infrastructure, high-end residential and commercial spaces since 2010, slowing significantly during the pandemic, but picking up gradually by the beginning of 2021.
The turnover of the construction sector is estimated at $4.3 billion annually.
According to some estimates, it is expected to reach US$ 10.5 trillion by 2023.Large scale infrastructure projects are already in the pipeline with the government’s determination to increase the construction industry’s GDP contribution to roughly 8-10% and the momentous Port City development project paves the way for some large scale construction tasks for the country, also encouraging foreign investments.
The Government, under the Ministry of Urban Development, is currently employed in executing its vision of radically modernizing urban infrastructure in and around Colombo by utilizing innovative technology to propel it to ‘high income developed nation’ status by 2030.