The National Construction Workers Union (NCWU) has said the price of a bag of cement has risen by nearly Rs. 300 over the past two to three months and warned the construction industry could collapse if increases continue.

NCWU General Secretary Supun Abeysekara said a bag that sold for around Rs. 1,900 was now being retailed at Rs. 2,250. He said the Maximum Retail Price printed on some bags had reached Rs. 2,400.

Speaking at a media briefing, he carried a bag of cement to illustrate the point. He accused manufacturers of raising prices gradually, which he said placed an added financial burden on consumers and contractors.

Abeysekara said prices of other construction materials, including aluminium and sand, were also rising. He said the industry was already struggling with a severe shortage of skilled workers, many of whom had gone overseas, including to Romania and Israel, in search of work.

He said nearly 1.5 million people depend on the local construction industry and could be affected. He urged the relevant Minister and authorities to intervene, introduce effective price controls and set rules to prevent unfair pricing.

Background

Cement is one of the main inputs in house building, road works and other construction. Its price therefore affects the cost of projects ranging from a family home to public infrastructure, and contractors often cannot pass on higher costs once a price has been agreed.

Manufacturers print a Maximum Retail Price on each bag, and retailers may not charge more than that figure. Consumer protection rules in Sri Lanka are administered by the Consumer Affairs Authority, which has powers to act on pricing complaints.

The union’s figures are its own. The Rs. 350 gap between the earlier price of about Rs. 1,900 and the current retail price of Rs. 2,250 is slightly higher than the rise of nearly Rs. 300 that Abeysekara cited, and prices can differ between shops and regions.

What it means

For households building or repairing a home, a higher cement price raises the cost of foundations, walls and floors, and may delay work. Buyers can compare the price charged against the Maximum Retail Price printed on the bag.

For contractors and workers, the union says rising material costs and the departure of skilled labour put jobs at risk. Any official response, such as price controls or an investigation, would be announced by the relevant ministry or the Consumer Affairs Authority.

Anyone who believes they have been charged above the printed price can report it to the Consumer Affairs Authority.