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For decades, Access Engineering PLC has been a foundational pillar of Sri Lanka’s development, its name synonymous with the nation’s roads, bridges, and landmark buildings. Yet, beneath this established identity, a strategic transformation has been unfolding. Guided by a core philosophy of “value engineering,” the company has evolved from a construction powerhouse into a diversified conglomerate spanning nine sectors from automotive and logistics to pioneering ventures in renewable energy and radiopharmaceuticals.

This calculated diversification has not only built resilience against economic headwinds but has also fuelled impressive growth. For the financial year ending March 31, 2025, the Group reported a 61 percent surge in turnover to Rs. 34.511 billion and a net profit of Rs. 6.291 billion, while declaring Rs. 2 billion in dividends.

Mirror Business recently sat down with Access Engineering PLC Co-Founder and Executive Vice Chairman Christopher Joshua to delve into the strategy behind this expansion, the challenges of navigating the current economic landscape, and the company’s vision for engineering a sustainable future. The following are excerpts from the discussion.

Q Access Engineering has diversified into nine interconnected sectors, with civil engineering now contributing 58.32 percent to Group revenue. Could you elaborate on this strategy and the philosophy behind it?

Our core philosophy has always been about creating value in every business we engage in through value engineering. As an engineering company, this started with backward integration—moving into engineering design and then into producing our own materials. This process allowed these businesses to evolve into market leaders on their own. Our diversification is a natural evolution of finding and creating value, which has given us resilience, especially during challenging economic times. We’ve now clearly segmented our business in our reporting so stakeholders can better understand the strengths of each vertical.

Q The construction materials segment has become a major contributor, reportedly over a third of your turnover. How did this business evolve to become a market leader?

This segment grew directly from our value engineering focus. By integrating vertically—owning quarries for aggregate and rock, and producing our own asphalt and concrete—we maximized productivity and minimized costs. 

This allows us to supply high-quality materials, like asphalt, at very competitive prices. We now maintain a 70 percent share in asphalt supply, serving over 300 contractors across the country from small contractors to major projects. This segment is a huge revenue contributor and a cornerstone of our portfolio.

Q Shifting to the property sector, Access Engineering has a significant footprint in commercial and residential real estate. Could you walk us through your key projects?

Our property portfolio is a significant segment. We have Access Tower I and II, which remain fully occupied with high-end tenants. Our success here comes from applying our inherent knowledge as a contractor to development; for instance, we designed Access Tower II to be almost column-less, maximizing usable floor area to 95 percent, well above industry norms.

Our flagship residential project is Marina Square, a development of 1,068 units that is Sri Lanka’s largest single-phase harbour-front mixed-use development. The project boasts unprecedented common facilities, including two acres of landscaped gardens. Despite economic instability, we prioritised quality by offering premium brand finishes without cost escalation, which strengthened strong buyer confidence, leading to over 600 unit sales by year-end. The development of the Colombo Port City is very complementary to this project.

Q Innovation and R&D seem to be core to your strategy of ‘value engineering’. How does Access Engineering foster a culture of innovation, and can you share some recent examples of new technologies or processes you’ve implemented?

Our commitment to innovation is foundational, and we have formalized this through our in-house R&D hub, ‘IdeaNest,’ which fosters a culture of applied research and spearheads transformative projects. 

We actively collaborate with academia and industry experts to pioneer new solutions. A prime example is the ‘Smart Drain’ project, an AI-powered drainage system developed to mitigate urban flooding, which gained global recognition as a finalist at the 2025 WIPO Global Awards. 

We are also heavily invested in digital transformation, using advanced Building Information Modeling (BIM) platforms like Navisworks and Revit to enhance 3D coordination and reduce rework. On the materials side, we’ve pioneered the use of Zinc Thermal Spray (Zn TS) technology as a more flexible and environmentally friendly alternative to traditional galvanizing for corrosion protection.

Q You’ve also made a substantial entry into the logistics and warehousing sector. What drove this move?

This was a complementary opportunity that came through our construction business. We were contracted by Michelin to build their largest logistics facility in this part of Asia. This evolved into us developing the entire facility for them as an investor and renter. This project in Ekala is a state-of-the-art, nearly 700,000 sq. ft. warehouse and logistics facility.

Additionally, we have our own 430,000 sq. ft. logistics facility in Kimbulapitiya, home to Sri Lanka’s largest single-roof industrial facility. With these projects, which represent nearly 25 percent of the country’s total warehousing capacity, this has become another substantial, standalone business for us.

Q Beyond heavy civil projects, Access Engineering has also been a key player in developing Sri Lanka’s telecommunication infrastructure. Could you tell us about your long-standing work in deploying the nationwide fibre optic network?

We have a long-standing collaboration with Dialog Broadband Networks, having laid over 3,500 kilometers of fibre optic cables nationwide. A key challenge was deploying this network without causing public inconvenience. To achieve this, we introduced trenchless Horizontal Directional Drilling (HDD) technology to Sri Lanka. This allowed us to drill under roads, often at night, to install cables without disturbing the surface, enabling a massive rollout with minimal disruption. The main network is now complete, and our ongoing work focuses on final connectivity for mobile and enterprise sites.

Q The automotive sector is another key vertical for Access Engineering. How is this segment performing, especially with the recent lifting of import restrictions?

We operate through Sathosa Motors PLC (Isuzu) and our 50 percent stake in Access Motors (Jaguar and Land Rover). Isuzu is the market leader in its truck segment, and with the lifting of the four-year import ban in February 2025, we are seeing a sharp expansion in our order book. This translated into a significant improvement in financial performance, with Sathosa Motors PLC’s profit before tax rising more than five-fold to Rs. 419 million. With import channels reopening, both entities are well-positioned to capitalise on renewed demand.

Q Access Engineering is involved in highly specialized fields, from port services to renewable energy. Could you shed some light on these ventures?

These ventures are examples of leveraging our core competencies to seize new opportunities.

Port Services: We have been in marine construction for years, which pre-qualified us for major port projects. We have a joint venture with ZPMC, the global leader in port machinery, for crane maintenance and commissioning. We also established our own 100 percent-owned subsidiary, Access Engineering Port Services, which commenced operations in November 2024 under a comprehensive maintenance contract with the Colombo West International Terminal (CWIT).

Renewable Energy: The vast roofs of our warehouses provided a perfect opportunity. We now have a total installed rooftop solar capacity of 15.8 megawatts, including the largest single-location rooftop installation in Sri Lanka (9.2 MW) at our Ekala facility. The clean energy generated is supplied directly to the national grid, reinforcing our contribution to national renewable energy capacity.

Q Perhaps your most unique venture is in radiopharmaceuticals. What is the goal of this project and its expected impact?

This is a pioneering project for Sri Lanka with immense social impact. Currently, Sri Lanka detects about 30,000 cancer cases annually, but only around 2,000 patients get a PET scan due to the high cost and logistical difficulty of importing the necessary radioisotope, Fluorodeoxyglucose (FDG). Imported isotopes lose efficacy during transit.

Our project, Access Medical Tracers, is a joint venture to establish the country’s first homegrown radiopharmaceutical production facility. By manufacturing FDG locally using a state-of-the-art cyclotron system from GE Healthcare, we aim to improve diagnostic accuracy, affordability, and reach. This will make PET scans more accessible, enabling early cancer detection, which is critical for improving survival rates. We expect operations to commence in FY 2025/26.

Q While the broader economy is showing signs of recovery, how do you assess the current state and outlook for Sri Lanka’s construction industry?

Sri Lanka’s construction sector rebounded strongly in 2024, driven by renewed access to project financing and the resumption of public-sector payments for previously stalled infrastructure projects. I personally monitor cement consumption as a key indicator. Before the crisis, annual consumption was about 6 million tons, which dropped to 3.5 million at its lowest. Last year it recovered to 4.5 million tons, and in the first six months of this year, we are already at 2.5 million tons, which signals a clear upward trend.

However, the industry still faces headwinds like funding constraints and a significant shortage of skilled labour, which remains an ongoing concern. Despite these challenges, the opportunity is immense. There is much-needed infrastructure to be built to meet the country’s tourism and GDP growth goals. Projects like the airport expansion and major expressways are critical, and as they move forward, the entire sector will benefit.

Q As Sri Lanka looks to accelerate infrastructure development, you’ve spoken about empowering domestic players. Why is prioritizing local contractors over foreign ones so critical for the country’s long-term economic health?

It is absolutely critical. When we use what we have domestically, the money remains within the local economy. The funds circulate here, all the value addition happens within the country, and it empowers our regional and rural businesses. 

If you hire a foreign contractor, perhaps only a marginal import component of 15-20 percent is needed for a local project. But with a foreign firm, as much as 80 percent of the project’s value can go out of the country in the form of their margins, overheads, profits, and imported components. That’s a massive drain of foreign exchange that we must avoid at all costs.

The argument that we lack expertise is no longer valid. All the leading contractors in this country, including us, are fully capable of doing any project here. The knowledge has been acquired, partly through successful joint ventures with international firms which helped us learn global best practices. The proof is that major global players like Adani and Michelin trusted us to build their terminals and state-of-the-art facilities. That expertise is available right here in Sri Lanka.

Q The recent economic crisis triggered a significant wave of migration and ‘brain drain.’ How was Access Engineering impacted by this, and what is the current situation regarding human capital?

We were certainly challenged and lost a lot of people. To give a stark example, at one point we had 26 mining engineers, and every single one of them secured permanent residency in Australia. The brain drain affected both our professional staff and our skilled ‘blue-collar’ workers. While we can recruit fresh engineering graduates who are keen to get the training and experience we offer, attracting and retaining skilled labour is an ongoing, industry-wide challenge.

Currently, because the industry had contracted, the shortage is manageable. However, as activity ramps up, it will become a more significant issue. Our strategy is to be a preferred employer. We’ve increased our investment in training, sustained our on-the-job learning programmes, and focused on employee well-being. Our efforts are showing positive results; our staff retention rate improved to 87 percent this year from 76 percent in the previous year.

Q Finally, looking ahead, what are the key objectives for Access Engineering?

Our focus remains on bottom-line growth over top-line growth. Our future will be shaped by both continuity and innovation. Our core construction segment will remain central, and we are committed to executing high-quality developments that contribute meaningfully to national progress. At the same time, we will scale up future-ready sectors like renewable energy and radiopharmaceuticals to align with national goals and global trends. 

Our diversification into nine focus areas gives us the advantage of being able to concentrate on growth sectors even in the short term. If external circumstances remain conducive for business, we are confident that Access Engineering will continue to progress very well.