One of Sri Lanka’s leading PVC pipes and fittings manufacturer says, if the high interest rates prevail, it could dampen demand in the construction industry as medium and small scale investors defer new investments.
Chairman of the Central Industries PLC S. V. Wanigasekera points out that apart from the rise in the interest rates, the unprecedented depreciation of the local rupee is also worrying them.
“The volatility and uncertainty in the exchange rate will place pressure on margins as the Company and the industry are almost fully dependent on imported raw material inputs”, added Wanigasekera, in his review made to the firm’s latest annual report.
He expects that the measures taken by the policy makers should help stabilize and correct this volatility.
”If these weaknesses in the macroeconomic environment are corrected we anticipate that the construction industry could lead the growth and resurgence of the Sri Lankan economy” added the Chairman of the Central Industries PLC.
Central Industries PLC, a firm engaged in Manufacturing & distribution of PVC Pipes & Fittings has achieved a profit before tax of Rs. 150 million during the year 2011/2012, a 23% over the previous year.
The listed firm in the Colombo Stock Exchange announced that it is planning to establish its second production and warehouse facility at a newly acquired property in Yakkala.
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