Cost of Building a 2-Story House in Sri Lanka (2025 Complete Breakdown)
Cost of Building a 2-Story House in Sri Lanka (2025 Complete Breakdown)
"Can I build for Rs. 10,000 per square foot?"
This is the most common question I hear from first-time home builders in Sri Lanka. The short answer? Not in 2025. Not if you want a quality finish that won't crack, leak, or fall apart in 5 years.
The days of building a respectable house for Rs. 5,000 per sq ft ended around 2020. After the economic crisis of 2022, material and labor costs have stabilized, but at significantly higher levels. If you're planning to build a standard 2,000 sq ft two-story house (the typical size for a 6-10 perch plot), you need to budget correctly—or risk running out of money with half-finished walls.
In this guide, I'll break down the real costs based on current material prices and labor rates as of Q1 2025.
Table of Contents
- Understanding Cost Per Square Foot
- Structure vs Finishing: Where Does the Money Go?
- Material Price List (Q1 2025)
- Labor Contract vs Turnkey Contract
- Hidden Costs Everyone Forgets
- Sample Budget: 2,000 Sq Ft House
- FAQs
- Verdict: Build or Buy?
1. Understanding Cost Per Square Foot
Contractors quote a "Rate per Sq Ft" (PSF). This is convenient but often misleading because the finish level varies dramatically.
| Grade of Finish | Cost Per Sq Ft | What You Get |
|---|---|---|
| Basic (Budget) | Rs. 9,000 - 11,000 | Cement block walls, Asbestos roof, Basic tiles (Rs. 200/ft), Local sanitaryware, No pantry cupboards, Paint-only finish. |
| Standard (Mid-Range) | Rs. 12,000 - 14,000 | 9" Red brick walls, Amano roof with insulation, Rocell/Lanka tiles, Powder-coated aluminum windows, Rocell sanitaryware, Basic teak pantry. |
| Premium (Luxury) | Rs. 16,000 - 20,000+ | Jack wood timber, Kumbuk staircase, Marble/Titanium floors, Solar panels, Tempered glass, Grohe/Kohler fittings, Smart home wiring. |
Estimated Total for a 2,000 Sq Ft Standard House:
2,000 × Rs. 13,000 = Rs. 26,000,000 (26 Million)
💡 Pro Tip: When a contractor quotes Rs. 10,000 PSF, ask them to list exactly what's included. Get it in writing. Most "cheap" quotes exclude tiles, sanitaryware, wiring fittings, and painting—items that can add Rs. 3,000-4,000 per sq ft.
2. Structure vs Finishing: Where Does the Money Go?
This is the most critical concept for budgeting. Many people spend 80% on the structure and run out of money before they can tile the floors.
The 35/65 Rule:
- Structure (Grey Stage): ~35% of total cost
- Finishing: ~65% of total cost
Phase 1: The Structure ("Bass Weda")
This includes the Foundation, Columns (pillars), Beams, Slabs (concrete floors), Walls, and Roof Framework.
Key Material Costs:
- Cement (50kg bag): Rs. 2,200 - 2,400
- Tor Steel (1 ton): Rs. 270,000 - 290,000
- River Sand (1 cube): Rs. 20,000 - 24,000
- Metal/Aggregates 3/4" (1 cube): Rs. 14,000 - 17,000
Key Labor Rates (2025):
- Mason (Baas): Rs. 4,000 - 5,000 per day
- Helper: Rs. 2,500 - 3,000 per day
Phase 2: The Finishing (Where Budgets Explode)
This is where most people underestimate costs.
- Tiling: A single 2x2 tile costs Rs. 600 - 1,500. Laying labor is Rs. 100-150/sq ft. For 2,000 sq ft of tiling, expect Rs. 1.5 - 3 Million.
- Electrical Wiring: A single plug point (labor + material) costs Rs. 4,500 - 5,500. A 3-bedroom house needs 40-50 points minimum.
- Plumbing: A standard commode set (Western) costs Rs. 35,000 - 80,000. A full bathroom (toilet + sink + shower + taps) costs Rs. 100,000+.
- Doors & Windows: A single Jack wood door sash costs Rs. 45,000 - 60,000. Aluminium windows cost Rs. 2,200 - 3,500 per sq ft.
- Pantry Cupboards: A 10-foot pantry section costs Rs. 400,000 - 600,000.
- Painting: Rs. 120 - 180 per sq ft (including putty and primer).
3. Material Price List (Q1 2025)
Prices fluctuate monthly. Use this as a baseline and verify before purchasing.
| Material | Unit | Price Range (Rs.) |
|---|---|---|
| Cement (Tokyo/Prima) | 50kg bag | 2,200 - 2,400 |
| Reinforcement Steel (Tor 10mm) | 1 ton | 270,000 - 290,000 |
| River Sand (Washed) | 1 Cube | 20,000 - 24,000 |
| Metal/Aggregates (3/4") | 1 Cube | 14,000 - 17,000 |
| Red Bricks | Each | 38 - 48 |
| Cement Blocks (4") | Each | 70 - 85 |
| Cement Blocks (6") | Each | 95 - 115 |
| Amano Roofing Sheet (0.47mm) | Sq Ft | 180 - 220 |
| Asbestos Sheet (Standard) | Sheet | 2,400 - 2,800 |
| Emulsion Paint (Dulux/Nippon 20L) | Bucket | 28,000 - 38,000 |
| Weather Shield Paint (20L) | Bucket | 38,000 - 48,000 |
| ACL Wire (2.5mm, 90m) | Roll | 14,000 - 16,000 |
4. Labor Contract vs Turnkey Contract
This is a crucial decision that affects cost, quality, and your stress levels.
Option A: Labor Contract (Labour Only)
You purchase all materials (cement, steel, bricks, tiles, etc.). The contractor only provides the workforce.
Pros:
- You control material quality (no contractor shortcuts).
- Cheaper overall (no contractor markup on materials, typically 15-25%).
- You know exactly what goes into your house.
Cons:
- Time-consuming: You must visit the site daily, often at 6-7 AM.
- Material logistics: If cement runs out mid-day, work stops, but you still pay daily wages.
- Stressful: Requires construction knowledge or a trusted supervisor.
Option B: Turnkey Contract (Full Construction)
You sign a fixed-price contract (e.g., Rs. 30 Million), and the contractor delivers the finished house.
Pros:
- Stress-free: You visit occasionally and get the key at the end.
- Fixed budget (if the contract is well-drafted).
- Professional project management.
Cons:
- Contractors may use cheaper materials (lower-grade cement, thin steel).
- Quality may be lower than self-supervised builds.
- Changes mid-construction trigger expensive "variation orders".
💡 Pro Tip: The hybrid approach works best for most people: Turnkey for Structure, Labor Contract for Finishing. Let the contractor handle the complex structural work, then take over for tiling, painting, and fittings where you can choose exactly what you want.
5. Hidden Costs Everyone Forgets
When budgeting Rs. 26 Million for a 2,000 sq ft house, add 15-20% extra for these overlooked expenses:
| Hidden Cost | Estimated Amount |
|---|---|
| Building Plan Approval (Municipal Council) | Rs. 25,000 - 75,000 |
| Electricity Connection (CEB) | Rs. 45,000 - 65,000 |
| Water Connection (NWS&DB) | Rs. 30,000 - 50,000 |
| Boundary Wall (6ft, for 10 perches) | Rs. 1,200,000 - 1,500,000 |
| Roller Gate (12ft) | Rs. 180,000 - 300,000 |
| Septic Tank (Standard) | Rs. 180,000 - 250,000 |
| Driveway Paving (Interlock) | Rs. 150,000 - 300,000 |
| Curtains & Blinds | Rs. 150,000 - 300,000 |
| Light Fittings & Fans | Rs. 100,000 - 200,000 |
Total Hidden Costs: Rs. 2,000,000 - 3,500,000 (2-3.5 Million)
This doesn't even include furniture!
6. Sample Budget: 2,000 Sq Ft House
| Category | Allocation | Amount (Rs.) |
|---|---|---|
| Structure (Foundation to Roof) | 35% | 9,100,000 |
| Finishing (Tiles, Wiring, Plumbing, Paint) | 50% | 13,000,000 |
| External Works (Wall, Gate, Paving) | 10% | 2,600,000 |
| Contingency (Unexpected) | 5% | 1,300,000 |
| TOTAL | 100% | 26,000,000 |
7. Frequently Asked Questions
Q1: How long does it take to build a 2-story house?
With good weather and no material shortages, expect 10-14 months for a standard build. Monsoon delays can add 2-3 months.
Q2: Should I buy steel now or wait?
Steel prices have stabilized in 2025 after the 2022 spike. If prices are stable, it's generally best to buy when you're ready to use it (steel rusts if stored too long). Check the current price at local steel merchants before committing.
Q3: Is it cheaper to build in Colombo or outside?
Labor rates are similar across the Western Province. Material costs are slightly higher outside Colombo due to transportation. However, land is significantly cheaper outside, so overall homeownership cost is lower in suburbs like Horana, Padukka, or Gampaha.
Q4: Can I reduce costs by using cement blocks instead of bricks?
Yes. Cement blocks are faster to lay (fewer units per wall) and slightly cheaper. However, brick walls are stronger and provide better thermal insulation. For exterior walls, I recommend bricks. For interior partitions, blocks are fine.
Q5: What's the minimum I can spend on a basic 2-story house?
If you go truly basic (asbestos roof, cement floor, no pantry, minimal fittings), you might achieve Rs. 9,000 per sq ft. For 2,000 sq ft, that's Rs. 18 Million. But this will feel like a "shell" rather than a home.
8. Verdict: Build or Buy?
In 2025, the calculus depends on your situation:
Build if:
- You have 12-18 months to wait.
- You want complete customization.
- You have time to supervise (or can hire a trusted supervisor).
- You have financing arranged (construction loans have higher interest rates).
Buy if:
- You need a house immediately.
- Sellers are offering good prices (some 2023 builds are selling at cost).
- You're not comfortable with construction management.
- You can find a recently built house that matches your needs.
My recommendation: If you have the time and patience, building is better for long-term value. You know exactly what went into the house, and you can avoid the "hidden defects" common in hastily built speculative houses.
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