Mainly in cement, tile and aluminium subsectors

A forum on ‘Housing for all: the role of competition policy in construction’ was held recently by Advocata Institute in partnership with Templeton Foundation, subsequent to a collaborative study into the subject. The goal of the study was to highlight the need for competition within the construction industry, in Sri Lanka and its neighbours as affordable housing is thought to be a human right.

A policy brief titled, ‘The Impact of anti-competitive practices in the Construction Industry on Housing for the Poor in Urban Sri Lanka’, by Advocata Institute was presented by Dr. Roshan Perera. Anti-competitive trade practices in three key input markets in construction were identified and their implications on housing affordability. The markets identified were cement, tile and aluminium.

After this presentation the first panel, moderated by Dr.Roshan Perara, consisted of Prof.Prema-chandra Athukorala, Athula Amarasekera,and Eng. Thilak Premalal. The panel reiterated the nature of anti-competitive trade practices and its impact on the construction industry in Sri Lanka, particularly in the cement, tiles and aluminium market. It also looked into the issue of housing affordability, and how it is affected by these anti-competitive trade practices. Athula Amarasekra said. “There is an assumption that trade policy can be substituted for competition policy. Trade policy won’t be effective unless there is a strong institutional mechanism to implement competition policy.”

The subsequent panel consisting of Anu Anna Jo, Omar Raad Chowdhury, Dr. Malathy Knight, Dr. Joseph Wilson, moderated by Rehana Thowfeek, Research Consultant Advocata, discussed the existence of anti-competitive practices in the housing industry across the region. They also spoke about their respective competition authorities and how they operate and their shortcomings as well as ways in which these shortcomings can be overcome.