The 2023-24 Budget submitted by the Minister of Finance on 2 June has provided a boost to the construction sector. The budget also extended the relief on housing loans.
Accordingly, the law governing the construction sector, in particular the Construction Industry Development Board Act, will be amended to waive the mandatory requirement for foreign and local contractors and consultants to work together.
This applies in cases where the services of a foreign company are required and there is no local contractor or consultant who can work with the foreign company due to the size of the local industry or the area of expertise required to carry out the projects.
In addition, the Minister of Finance has extended the home loan payment plan by one year. Anyone taking out a secured loan to finance the construction of their home will continue to benefit from a repayment of 5% of the amount disbursed, up to a maximum of Rs 500,000.
Amounts borrowed up to 30 June 2025 are eligible. From 1 July 2023, individuals will be entitled to a maximum facility of Rs 500,000.
