Inflated construction material prices ‘not coming down’ despite strengthened LKR

Construction material prices have not shown any downward adjustments despite Sri Lanka rupee strengthening against the US dollar, Susantha Liyanaarachchi · Chairman at National Construction Association of Sri Lanka (NCASL) told the media on Saturday.

“The construction material market has not marked down their prices in line with the appreciation of the rupee. This needs to be done to pass the benefit to the customer who would otherwise be paying the same prices as before because material prices went up from time to time when the rupee was depreciating, and now the reverse should happen,” Susantha said.

“The price of electrical wire has increased to Rs. 6,950 from Rs. 1,700. Earth wire which was sold at Rs. 4,500 went up to Rs. 18,990 during the foreign exchange crisis. If they reduce the prices in line with the new exchange rate, people should be able to buy earth wire at Rs. 10,000 today. But this is not happening,” Supun Abeysekara, Secretary, Labour Community of the Construction Industry said.

Meanwhile, a group of consumers said,” The price of well-made household paint is still too high. We can’t afford to paint our houses for the Sinhala New Year.”

“The fact that the rupee-dollar exchange rate is around Rs. 300 hasn’t caused any price revisions of construction materials. If the Consumer Protection Authority quotes a market price for eggs, milk powder and a cup of tea, why don’t they quote a price for a bag of cement?,” they queried.

-SN