Investigating the effect of economic crisis on rural road construction projects in Sri Lanka

Abstract

The recent economic crisis in Sri Lanka has severely disrupted the construction industry, particularly rural road projects, which are essential for regional development and connectivity. This research investigates the impact of the crisis on rural road construction projects across financial, time, quality, workforce, and procurement dimensions, and evaluates the effectiveness of mitigation measures implemented during this period. A mixed-method approach was adopted, combining a literature review with a structured questionnaire survey targeting industry stakeholders including engineers, contractors, consultants, and government officials. The collected data were analysed using descriptive statistics, the Relative Importance Index (RII), and Cronbach’s Alpha to assess the internal consistency of grouped variables. Findings indicate that financial issues—especially increased costs of materials and fuel, cash flow shortages, and delays in payments—had the highest impact on rural road projects. These financial constraints caused project suspensions, reduced quality supervision, demobilization of skilled labour, and frequent use of alternative materials. Procurement disruptions, such as difficulties in importing goods and volatile local pricing, further intensified project risks. While stakeholders adopted several mitigation measures, contingency planning, project timeline adjustments, and reliance on local suppliers were perceived as most effective. However, the reliability analysis showed relatively low internal consistency for workforce-related responses, suggesting the complexity of organizational-level impacts during economic shocks. The study concludes that the crisis exposed critical vulnerabilities in rural infrastructure delivery, particularly in regions with limited access to resources and support. It recommends the institutionalization of proactive risk management practices, strengthening of local supply chains, and the development of targeted government support mechanisms to enhance the resilience of future projects. This research contributes to understanding the sector-specific effects of economic instability and provides a foundation for improving rural infrastructure sustainability under future crisis conditions.