ACL Cables expects demand boost for construction materials as sector recovers

ACL Cables PLC, one of Sri Lanka’s largest electric cable manufacturers, is confident of increased demand for construction materials, as construction activities have resumed across the country.

After a prolonged hiatus, the construction industry is showing early signs of recovery, driven by the resumption of the halted projects in key sectors such as government infrastructure, residential housing and high-rise developments.

“The resurgence in construction activities is expected to drive heightened demand for materials within the sector. Factors contributing to this include the resumption of privately funded and government development projects, some slated for completion before the upcoming elections. 

Additionally, a relatively favourable post-crisis macroeconomic environment, marked by stability in interest rates and the exchange rate, along with the anticipation of pent-up housing demand being gradually realised, supported by wage growth aligning with inflation and significantly low housing loan rates,” ACL Cables Managing Director Suren Madanayake told the company’s shareholders in its recent annual report.

He highlighted that the construction sector in Sri Lanka displayed remarkable resilience and adaptability throughout 2023, against a backdrop of challenges. 

“A proactive approach to stimulating growth, through increased infrastructure development and government spending, underscored industry efforts. Despite the persistent subdued demand and regulatory uncertainties, the stakeholders remain optimistic about the sector’s long-term prospects, driven by a shared commitment to sustainable expansion,” he added.

Meanwhile, ACL Cables aims to increase its footprint in established international markets and branch out into new regions, to take its export business to the next level. The company exports multiple products, including domestic cables, power cables, switches and accessories.

In the local retail market, the company aims to gain a higher market share by expanding the presence of its switch and MCB ranges, while strengthening its brand presence. (NF)