Dr Sarath Obeysekera

A Policy Shift Towards Steel and Prefabricated Construction for Sri Lanka’s Public Infrastructure

Time for a New Approach to Government Construction Procurement

Sri Lanka’s public sector construction procurement procedures have traditionally been based on conventional reinforced concrete structures with brick-and-mortar walls. Under existing procurement regulations, government institutions are required to prepare preliminary engineering designs, bills of quantities, and engineer’s estimates before calling for tenders. Technical Evaluation Committees and Tender Boards are subsequently appointed to ensure transparency and competitiveness in contractor selection.

While these procedures remain fundamentally sound, the assumptions upon which engineering estimates are prepared have become increasingly outdated.

Today, the construction industry faces severe challenges arising from shortages of skilled labour, escalating material costs, delays in project implementation, and increasing pressure on public finances. Prices of cement, sand, aggregates, and transportation continue to fluctuate, while the availability of experienced craftsmen has declined significantly due to migration and an aging workforce.

As a result, many public projects suffer from cost overruns and prolonged construction periods.

A Cabinet-Level Policy Decision is Needed

To address these emerging realities, the Government should consider introducing a policy directive requiring all state institutions to prepare two alternative engineering estimates during the project planning stage.

These should include:

Option 1: Conventional Construction

• Reinforced concrete structural frame
• Brick or block masonry walls
• Traditional site-based construction methods

Option 2: Industrialized Construction

• Structural steel framing
• Prefabricated wall panels
• Modular building components
• Factory-fabricated assemblies

Both options should be evaluated on:

• Capital cost
• Construction duration
• Labour requirements
• Lifecycle maintenance costs
• Environmental impact
• Future adaptability

Such a dual-estimate approach would allow decision-makers to compare alternatives objectively before committing public funds.

Addressing the Labour Crisis

One of the greatest threats to Sri Lanka’s construction industry is the shortage of skilled labour.

Thousands of trained craftsmen, welders, fitters, masons, and technicians have migrated overseas seeking better opportunities. Simultaneously, younger generations show less interest in physically demanding construction trades.

Steel and prefabricated construction systems require fewer on-site workers and shift much of the labour-intensive activity to controlled factory environments. This reduces dependence on scarce site labour while improving productivity.

Instead of lamenting the labour shortage, Sri Lanka must adapt its construction technologies to the realities of the modern workforce.

Opportunities for Small and Medium Steel Fabricators

A transition towards steel and modular construction would create significant opportunities for local fabrication workshops throughout the country.

Rather than awarding entire projects to a few large contractors, public projects could be divided into modular fabrication packages. Small and medium-scale steel workshops could manufacture:

• Structural frames
• Roof trusses
• Staircases
• Wall panels
• Utility modules
• Building accessories

These components could then be assembled rapidly at site.

Such an approach would decentralize economic benefits and stimulate regional industrial development while creating skilled technical employment opportunities.

Faster Project Delivery

One of the major advantages of prefabricated construction is speed.

Site preparation and foundation work can proceed simultaneously with fabrication of structural components in factories.

When modules arrive on site, assembly can be completed in weeks rather than months.

For schools, hospitals, fisheries facilities, public offices, and housing projects, this can significantly reduce project completion times and accelerate delivery of public services.

Improved Quality Control

Traditional construction often depends on variable workmanship and site conditions.

In contrast, factory-produced steel and prefabricated components are manufactured under controlled conditions using standardized processes.

This results in:

• Better dimensional accuracy
• Improved structural quality
• Reduced material wastage
• Easier inspection and certification

Quality assurance becomes more systematic and less dependent on continuous site supervision.

Better Monitoring and Accountability

Government agencies frequently struggle with project monitoring due to multiple activities occurring simultaneously on construction sites.

Modular construction simplifies progress monitoring.

Fabrication milestones can be verified at workshops, while installation progress can be measured accurately through completed modules.

This enhances transparency and enables more effective contract administration.

Environmental Benefits

Steel structures can often reduce material consumption and construction waste.

Many steel components are recyclable and reusable, supporting circular economy principles.

Reduced site activity also minimizes dust, noise, and environmental disruption, particularly in urban areas.

A Strategic Opportunity for Sri Lanka

Countries across Asia, Europe, and the Middle East are increasingly adopting industrialized building systems to improve productivity and address labour shortages.

Sri Lanka should not remain dependent solely on traditional construction methods developed decades ago.

By requiring alternative estimates for both conventional and steel-prefabricated solutions, government agencies can make informed decisions based on cost, speed, quality, and long-term value.

Such a policy would not only modernize public procurement but also stimulate domestic manufacturing, support small engineering enterprises, create skilled employment, and enhance national competitiveness.

The future of construction lies not merely in building structures, but in building them smarter, faster, and more efficiently. Sri Lanka has an opportunity to lead this transformation through visionary procurement reforms and a deliberate shift toward industrialized construction technologies.

Regards

Dr Sarath Obeysekera