Influence of BOI approvals on cost and time aspect of apartment construction in Sri Lanka

Abstract

This study investigates the influence of the Board of Investment (BOI) approval process on the cost and time aspects of apartment construction projects in Sri Lanka. The research aims to identify the specific challenges and factors associated with BOI approvals that impact project timelines and budgets. Utilising semi-structured interviews and a questionnaire survey, the study gathers insights from industry experts and practitioners, revealing that the BOI approval process varies with project types and involves diverse requirements such as UDA, SLTDA, and environmental approvals. Despite recent BOI initiatives to expedite approvals, delays persist, often leading to the expiration of BOI concessions and subsequent cost increases. A comprehensive framework was developed to summarise these findings, highlighting the critical cost and time-related factors at different project stages. The implications for industry practitioners include better preparation for BOI-related challenges, while academia and policymakers can use these insights to enhance understanding and refine regulatory processes. Limitations include a limited sample size and a focus on qualitative data. Future research could expand the scope and incorporate quantitative methods to validate and extend these findings.