SRI LANKA CONSTRUCTION SECTOR “Construction back with a BOOM” – First Capital Research Report
ECONOMYNEXT – Sri Lanka’s construction industry is expected to do well in the next few years given increasing homeownership affordability, big government infrastructure projects and rising demand for high-rises, stock brokers First Capital Equities said.
Growth in the sector slowed down in 2015 after the new government halted some big infrastructure projects, pending reviews of their costs and environmental impact.
“Infrastructure being one the main driving forces of the construction sector, suffered a hefty blow amidst slowdown in the infrastructure drive during 2015,” the brokers said in a research report on the construction sector.
But the brokers said they expect “a booming construction sector over next 2-3 years supported by rising affordability for housing, demand for skyscrapers and the government’s mega infrastructure drive.”
The report said the listed Construction & Building Material Sector on the Colombo bourse is expected to provide 46% average return (annualized 29%) over an 18-month period, well above the expected market return.
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