AN EXPLORATORY STUDY ON ABANDONED CONSTRUCTION PROJECTS IN THE WESTERN PROVINCE, SRI LANKA

Abstract

The construction industry creates a considerable impact on the country’s economy. The current economic crisis has severely affected the Sri Lankan construction industry whereby also affecting the entire construction supply chain. Researchers have mentioned that a project abandonment has an overall negative impact on both economy of the country and the construction industry. Thus, this research paper aims to explore the reasons for the abandonment of construction projects during the current economic crisis in Sri Lanka and identify the remedies to avoid in the future. A comprehensive literature review, a questionnaire survey, and semi-structured interviews were conducted to gather data in both qualitative and quantitative procedures. Semi-structured preliminary interviews were conducted to gather preliminary data before developing the final questionnaire. The empirical findings revealed that the material import restrictions imposed by the government, price increments in materials due to restrictions, disruptions in machinery operations due to scarcity of fuel, rising labour costs, and shutdowns in government-funded projects are the main reasons for the projects to be abandoned during the economic crisis. Encouraging foreign investments, controlling inflation and keeping on track of the country’s economy, easing tight import restrictions, and proper pricing mechanisms for construction materials are some of the remedies proposed to avoid projects being abandoned during the crisis. The research findings deliver valuable evidence to the practitioners with an in-depth understanding of the remedies to take over during a period of a crisis and thereby minimize the projects being abandoned.