Construction sector at risk as banks step up parate executions: CCISL

SAYS BANKS ARE PRESENTLY MOVING AT AN UNPRECEDENTED PACE TO AUCTION PROPERTIES MORTGAGED BY CONSTRUCTION COMPANIES AS COLLATERALS ASSERTS COMPANIES ARE BEING PUSHED TO BRINK DUE TO MOUNTING LOAN OBLIGATIONS CAUTIONS THAT WITHOUT TIMELY SUPPORT SUCH AS POLICY INTERVENTIONS, TEMPORARY MORATORIUMS OR STRUCTURED DEBT RELIEF, MANY FIRMS COULD FACE ASSET SEIZURES AND INSOLVENCY

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The local construction industry risks widespread collapse if urgent relief is not extended to the struggling firms, the Chamber of Construction Industry of Sri Lanka (CCISL) warned, citing a growing wave of parate executions by the banks on the mortgaged assets.

According to CCISL Secretary General and CEO Eng. Col. Nissanka N. Wijeratne (Retd), the banks are presently moving at an unprecedented pace to auction the properties mortgaged by the construction companies as collaterals.