The construction of five high-rise building projects across Sri Lanka has come to an abrupt halt due to the severe economic crisis that gripped the country in 2022. These projects, which were intended to address housing shortages and contribute to urban development, are now facing significant challenges, leaving the Ministry of Urban Development in a dilemma about how to proceed.
Three of the stalled projects are high-rise housing complexes located in Colombo, specifically in Torrington Mawatha, Colombage Mawatha, and Borella. The remaining two are in Wadduwa (Kalutara district) and Ragama (Gampaha district). The project in Ragama has been particularly affected, as the company responsible for its implementation has declared bankruptcy. Additionally, agreements with contractors for other projects have been terminated by mutual consent, further complicating their resumption.
Sources within the Ministry of Urban Development report that while these projects are incomplete, some have been prematurely declared finished. The reasons range from financial mismanagement to the collapse of construction companies amidst the economic downturn. The Ministry is now grappling with how to prioritize and revive these stalled initiatives.
Given the critical housing and infrastructure needs in the affected areas, the Ministry has identified the revival of these projects as a top priority. Officials are exploring potential partnerships, financial restructuring, and alternative contractors to resume work. These efforts are expected to take precedence over the initiation of new urban development projects, as the Ministry seeks to mitigate the impact of the economic crisis on infrastructure growth and public welfare.
The halting of these projects underscores the long-lasting effects of the economic turmoil on Sri Lanka’s development trajectory, with urban housing and infrastructure taking a direct hit.
