The Sri Lankan Government’s pre-election spending helped increase cement sales in Sri Lanka by Holcim, one of the world’s biggest cement manufacturers, in the March quarter although the global group itself made a loss.
Sales of cement and clinker by Holcim Lanka, the Sri Lankan subsidiary of the Swiss cement multinational, shot up 32.6 per cent in the March 2010 quarter, a company statement said.
Although the market is small, it was one of the market’s in the global group with the fastest growth in cement sales, behind Slovakia and Canada, during the period.
Holcim said in its results announcement that Sri Lankan cement prices fell 11.7 per cent in the March 2010 quarter from a year ago.
"The cement shipments of Holcim Lanka benefited from pre-election government investment and reached double-digit growth rates, as did the shipments of Holcim Bangladesh."
Sri Lanka held parliamentary polls in April 2010 and presidential elections in January.
The island is also recovering from a 30-year ethnic war that ended last May, with demand for cement boosted by reconstruction.