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Insights from AHK Sri Lanka's Construction and Water Sector Committee Meeting

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On 23 September 2025, the Construction and Water Sector Committee of AHK Sri Lanka met at their office in Colombo for a focused exchange among industry stakeholders on the state of Sri Lanka’s construction and infrastructure sectors.

Construction Sector Committee Meeting September 2025

The dialogue commenced with recognition that despite recent recovery efforts, the construction sector remains sluggish. Many projects are delayed or stalled, as material shortages, rising import costs, currency volatility and foreign exchange constraints hamper progress. A key challenge voiced by participants is the labour shortage. Some firms reported recruiting abroad, though visa issues, relocation costs and accommodation challenges present obstacles. 

 

The condition of the power grid and infrastructure was another prominent topic. Participants shared experiences of outages, voltage fluctuations and network overloads that disrupt construction schedules. Regarding feed-in tariffs, many firms are now opting for decentralized self-generation in order to become less dependent on unequal tariff structures and network instability. 

 

Following the discussion, AHK Sri Lanka presented on the current state of the German economy, highlighting trends. The presentation underscored potential synergies between German strengths and Sri Lanka’s needs, especially in green building, renewable energy and technical collaboration. The German government has adopted a new debt package, whose effects are expected to materialize gradually in a positive direction. 

 

The meeting concluded with thanks to all participants for their openness and constructive engagement. The exchange made clear how interdependent the challenges are across construction, energy and regulation. AHK Sri Lanka views this meeting as a strong foundation for continuing dialogue and closer German–Sri Lankan cooperation in the construction and infrastructure sector. 

 

AHK Sri Lanka is part of the global German Chamber Network, supported by the Federal Ministry for Economic Affairs and Climate Action (BMWK). With over 150 locations in 93 countries, the AHKs support German and local companies with their international business development, offering expertise, connections, and tailored services. As an essential partner of the Chambers of Commerce and Industry (IHKs) in Germany, AHKs operate in countries of strategic importance to German enterprises worldwide.

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