Construction sector will be more resilient - ICRA Lanka | Daily News


 

Construction sector will be more resilient - ICRA Lanka

ICRA Lanka, a subsidiary of Moody’s Investors Service, in a report on the country’s construction sector said it could better withstand the effects of COVID-19 pandemic compared with other economic sectors.

ICRA Sri Lanka in its report released yesterday noted that it however expects the lockdown and disruption to have some impact on the operating income, profitability, and liquidity position of the construction companies in the short term.

ICRA cautioned that the ability of construction companies to withstand the effects of COVID-19 pandemic will depend on several factors such as duration and severity of the pandemic, parent company support, Government policies and availability of additional capital support.

But ICRA Lanka expects the construction sector to demonstrate more resilience compared with other economic sectors. ICRA believes that construction projects will gradually pickup pace and stay within the original timelines as current domestic raw material production level and inventories are expected to sustain ongoing projects. The report highlighted that since there is a high reliance on imports for the construction sector, it can pose value chain disruption in a situation where many imports have been restricted. On the other hand, they should also be largely insulated from the adverse effect of raw material price volatility due to currency depreciation.


Visit Kapruka.com Sri Lanka's Largest online shop. Over 125,000 unique categories such as Fresh Flowers, Cakes, Food, Jewllery, Childrens Toys and other Sri Lankan e-commerce categories. Low delivery cost to most cities here and free delivery in Colombo.

Add new comment