Sharp rise in cement prices expected to impact both private and government projects

Villa cement. (Facebook Photo/OMSES Construction K.Huraa)

The Maldivian construction industry is currently navigating a period of intense economic volatility characterized by a sharp rise in cement prices. This inflationary pressure is threatening the viability of numerous private and public sector projects, raising alarm among developers and contractors. With prices for essential building materials effectively doubling, the market is facing supply chain bottlenecks and inflationary headwinds exacerbated by international geopolitical tensions and fluctuating shipping costs. Stakeholders are concerned that without intervention or market stabilization, the ripple effects will lead to prolonged project delays and increased financial burdens on the national economy.

Cement costs have increased from below MVR 100 to over MVR 200 per unit.
Construction project timelines for both public and private sectors are experiencing significant delays.
Global geopolitical instability, particularly affecting fuel prices, has driven up logistics and freight costs.
The Maldivian market remains heavily dependent on imports from India, UAE, Pakistan, and Vietnam, highlighting supply chain vulnerabilities.

The price of cement has sharply increased in the Maldivian market, creating serious challenges for construction workers and contractors.

Several traders told Sun that cement now costs more than twice what it did previously. A basket that sold for under MVR 100 is now priced above MVR 200, they said.

Contractors report that the sudden spike is already slowing down ongoing works and increasing project costs.

STO remains the country’s largest importer of cement and sand. Traders say that when STO releases smaller quantities to the market, demand shifts to private suppliers, pushing prices higher. STO could not be reached for comment regarding the current price surge.

Market observers also point to rising global oil prices as a contributing factor. The ongoing conflict between Iran and the United States has driven up fuel costs, increasing transportation and shipping rates. Higher freight charges directly raise the price of imported goods, including construction materials.

The Maldives sources most of its construction materials from India, UAE, Pakistan and Vietnam. Customs data shows India remains the largest supplier of stone and sand to the Maldivian construction sector.

Industry players warn that such a steep rise in cement prices will affect both private construction and government projects, increasing overall costs and slowing progress across the sector.

By Azhaar Abdul Azeez

Writer