Economic Crisis Adaptation in Sri Lankan Construction Industry: Pathway to Prosperity

Weerakoon Thilina Ganganath (), Wimalasena Sulaksha and Fedotova Kristine
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Weerakoon Thilina Ganganath: Institute of Civil Engineering and Real Estate Economics, Riga Technical University, Riga, Latvia
Wimalasena Sulaksha: Institute of Civil Engineering and Real Estate Economics, Riga Technical University, Riga, Latvia
Fedotova Kristine: Institute of Civil Engineering and Real Estate Economics, Riga Technical University, Riga, Latvia

Baltic Journal of Real Estate Economics and Construction Management, 2023, vol. 11, issue 1, 240-256

Abstract: The construction industry is a critical sector in the nation’s economic growth, accounting for a sizable share of GDP growth. However, it is the most vulnerable industry to a financial depression, whether local or worldwide. The present economic crisis has had an impact on the Sri Lankan construction industry, with more than half a million employees lost their jobs in the previous year. Many major construction firms have either paused or abandoned their projects and shifted to overseas construction. Therefore, understanding the consequences of financial crises regarding construction initiatives in Sri Lanka, as well as anticipated post-crisis growth paths in this sector, necessitates a thorough examination. The goal of this study is to extensively examine the consequences of the 2022 economic crisis on Sri Lankan construction projects and investigate remedies that might start a post-crisis rebound. The study utilized a mixed-method approach, combining quantitative and qualitative research methods. Purposive sampling was used to choose construction industry participants from various backgrounds in order to get a varied range of perspectives. The findings of this study not only emphasize the negative consequences of the crisis but also reveal prospects for development within the industry. The article offers construction professionals and other industry stakeholders useful insights about the foreseeable future of the country’s construction sector. The research looks at prospective growth areas such as the development of infrastructure, sustainable construction strategies, and the usage of emerging technology. The findings of the research can help to ensure that the sector has a robust and productive future.

Keywords: Construction industry; economic crisis; post-crisis growth; resilience strategies; Sri Lanka (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:bjrecm:v:11:y:2023:i:1:p:240-256:n:10

DOI: 10.2478/bjreecm-2023-0015

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