Impact of economic crisis on employees of contractors’ organisations in the Sri Lankan construction industry

Abstract

The construction industry contributes more than 6% of the GDP of the Sri Lankan economy, employing workers at different levels of the value chain. The economic crisis in the country from 2019-2022 has had a significant impact on contractors’ organisations in the Sri Lankan construction industry, resulting in job losses, pay cuts, and reduced working hours. Hence this study aims to investigate the impact of the economic crisis on the employees of contractors’ organisations in the Sri Lankan construction industry, the most affected level of employees, and propose strategies to minimise the impact on the most affected level of employees. This study has been done using the mixed-method approach. Thirty-three (33) employees participated in a questionnaire survey and seven (7) managerial-level professionals were interviewed who are currently engaged in construction projects. This study has explored the levels of employees including technical, supervisory, and similar levels, professional level, administration, and managerial level. Further, this study provides the strategies adopted by the employees and the contractors to overcome the impact of the crisis, including measures to enhance productivity, cost reduction strategies, and access to financial support. The findings of the study will provide insights into the impact of the economic crisis on the construction industry in Sri Lanka and inform policy recommendations to support affected workers and ensure the long-term sustainability of the industry in a resilient way.