The Ultimate Guide for Construction Businesses
The Construction Industry Development Authority (CIDA) is Sri Lanka’s central authority for regulating, registering, grading, and monitoring construction companies and contractors. Formerly known as ICTAD, CIDA manages the national contractor registration system, which is essential if you want to bid for government contracts or be recognized as a credible contractor in the industry. CIDA
Why CIDA Registration Matters for Your Construction Company
In the past, individual agencies used their own standards to register contractors, which led to inconsistency and confusion. To eliminate this and standardize industry practice, the government centralized contractor registration under CIDA. CIDA
Key Benefits of Registration
✔ Access to government projects – Most public sector tenders require valid CIDA registration. CIDA
✔ Official grading – Your company gets a grade that reflects its capabilities. CIDA
✔ Credibility & trust – Clients and partners use CIDA grades to select contractors. CIDA
✔ Encourages growth – The grading system motivates companies to improve financially and technically. CIDA
Who Must Register?
If your business carries out construction work in Sri Lanka — including:
- Building & civil engineering
- Electromechanical work
- Piling or specialized construction
…your company must be registered either with:
- Registrar of Companies (if a (Pvt) Ltd)
- or Provincial Secretaries (if sole proprietorship/partnership)
Additionally:
✔ The company must have at least 51% Sri Lankan ownership. CIDA
Once registered, your contractor status is valid for 3 years, after which renewal is required. CIDA
How CIDA Evaluates & Grades Your Company
CIDA doesn’t just issue a registration number — it grades your company based on:
1. Financial Capability
This measures the size of projects you’re capable of undertaking.
Each grade corresponds to a financial limit, expressed in Sri Lankan Rupees (Rs. Million). CIDA
Example (effective from 01.04.2025): CIDA
| Grade | Financial Limit (Rs. Million) | Registration Fee (per year) |
|---|---|---|
| CS2 | Over 6,000 | Rs. 700,000 + VAT |
| CS1 | 6,000 ≥ X > 3,000 | Rs. 420,000 + VAT |
| C1 | 3,000 ≥ X > 1,200 | Rs. 200,000 + VAT |
| C2 | 1,200 ≥ X > 600 | Rs. 75,000 + VAT |
| C3 | 600 ≥ X > 300 | Rs. 50,000 + VAT |
| C4–C9 | Lower limits | From Rs. 40,000 + VAT down to Rs. 6,000 + VAT |
For specialized contractors (electrical, mechanical, finishes), piling, and other niche fields, there are separate grade categories with their own financial limits. CIDA
This grading reflects your company’s capacity, experience, and scope of work. The higher the grade, the bigger and more complex the projects you can bid for. CIDA
Core Eligibility Criteria
Before applying, make sure your company:
✔ Is legally registered in Sri Lanka (Company, Partnership, or Business Name)
✔ Has at least 51% Sri Lankan ownership CIDA
✔ Has required financial strength and technical capability
✔ Is not insolvent or suspended by other government entities (Treasury or Public Finance) Scribd
These criteria ensure that only legitimate, capable businesses are on the CIDA register — which protects clients and strengthens industry quality. CIDA
Step-by-Step: How to Register with CIDA
1. Prepare Your Company Documents
You’ll need:
- Company registration certificate
- Memorandum & Articles of Association
- Shareholding structure (showing ownership)
- Financial statements
- Details of technical staff & equipment
2. Complete Application to CIDA
Visit the official CIDA portal and download or request the application for “Registration of Construction Contractors”. Submission must include verified copies of all documents and applicable fees. CIDA
3. Pay Processing & Annual Registration Fees
Fees vary depending on your desired grade. Generally, higher grades require higher registration fees. CIDA
4. Evaluation & Grading
CIDA reviews your submission based on:
- Financial capacity
- Technical staff
- Machinery/equipment availability
- Previous project experience
Once evaluated, you’ll receive:
✔ A CIDA registration number
✔ A grade assignment
✔ A record book or digital proof of registration
After Registration: Maintaining Status
Renew on Time
Your CIDA registration is valid for three years. Renewal requires updated financials and other supporting documents. CIDA
Keep Records Updated
If your company changes status (e.g., ownership, partnership status, or name), this must be updated with CIDA, often with supporting legal documents notarized. CIDA
Use Your Grade for Bidding
Clients and government agencies use CIDA grades to shortlist contractors in tender processes — so maintaining a higher grade increases opportunity. CIDA
Wrapping Up: Why This Matters for Your Construction Business
CIDA Registration is more than a compliance requirement — it’s a credential that unlocks growth, access to government and private sector projects, and industry recognition. With standardized grading based on capacity, experience, and financial strength, registered companies have a competitive edge in Sri Lanka’s construction sector. CIDA
If you’re serious about scaling your construction company — especially if you want to win larger contracts, partner with international firms, or secure government projects — getting registered and graded by CIDA should be a top priority.
