Mitigating measures for the escalation of building project costs amid Sri Lanka's economic crisis

Abstract

The construction sector in Sri Lanka faces formidable challenges due to economic fluctuations that escalate building project costs. Economic downturns adversely impact the industry, leading to rising materials, labour, equipment, and financing expenses. This research aims to investigate how to manage the escalation of building project costs amid Sri Lanka's economic crisis. A mixed-method approach is employed, integrating both qualitative and quantitative research techniques. Surveys and interviews with industry experts, along with detailed data analysis, assess the adaptability of significant measures to mitigate the impact of the economic crisis on building project costs in Sri Lanka. Moreover, the study identified barriers to implementing these measures and strategies to overcome them. Among the most viable mitigation measures are, using proper reusing and recycling procedures followed by encouraging specialization and training to close the skills gap and labour shortage and make use of technical advancements. This research offers actionable insights to stakeholders—industry professionals, policymakers, and investors—within Sri Lanka’s construction sector to better manage financial pressures during economic downturns. By contributing valuable knowledge on managing building project costs amid economic instability, this study aspires to support the development of a more resilient and adaptable construction industry in Sri Lanka, fostering long-term industry stability in the wake of recent economic challenges.