Abstract:
COVID-19 is a global pandemic that has wreaked havoc on the lives of many individuals
and has had a severe impact on the global economy. During this crisis, small and
medium-scale businesses suffer the most and are the least prepared among all
companies as per the previous studies done in other parts of the world. The majority of
the small-scale construction firms in Sri Lanka act as subcontractors and generate job
opportunities for a considerable number of people and are able to create a multiplier
effect on the whole economy. However, it was observed that they are more vulnerable to
the adverse impact of the pandemic. Thus, the principal goal of this research is to explore
possible survival strategies to overcome critical financial issues of small-scale
construction companies during the ongoing COVID-19 pandemic in Sri Lanka. A mixedmethod
approach was adopted to gather the data for the study. A comprehensive
literature review was carried out to identify the impact of COVID-19 on both global and
local construction industries. The data for this study was gathered using semi-structured
interviews and a comprehensive questionnaire survey with small scale construction
company owners and construction industry professionals. The findings highlighted the
key financial issues faced by the small-scale construction companies due to the pandemic
including delays in client payments, supply chain management issues, frequent price
escalation of construction materials, and inability to repay loans. The respondents
suggested creating partnerships with financially strong companies, reduction of
unwanted expenses, modifying supply chain channels and agreements, and ensuring
business continuity plans as the strategies to be used to overcome the financial burden
that occurred due to the pandemic.
