Wednesday, 30 December 2015

Port City’s public area gets wider under EIA plan

The new Environmental Impact Assessment (EIA) plan presented by the government for the Port City shows an increased public area. 

 The area allocated for public usage according their originally negotiated position of September 2014 was 63ha but now it has been increased to 96ha, which has moved the public land area from 27 percent of the total land extent to 36 percent. 

 The public areas will follow an open space concept consisting of a network of public parks and open water, large scale and small-scale streets, public squares and small plazas. Open space provision is based on land use, demographics and maximum walking distances to various facilities creating a hierarchy of open spaces that has the benefits of enhancing the physical character of an area; improving physical and social inclusion, including accessibility; and providing connected routes between places for walking and cycling, and safer routes to schools. 


(Source: Daily Mirror)

Monday, 28 December 2015

FCID Commences Probe On Krrish Deal

The police Financial Crimes Investigations Department (FCID) has commenced an investigation into the controversial Krrish Transworks Colombo (Pvt) Limited project that was initiated during the former Mahinda Rajapaksa regime. Several VVIPs of the former regime are hence expected to be interrogated by the FCID in the next few weeks.

The US$ 650 million Krrish square mixed development project in Colombo was aimed at constructing four high-rise buildings containing a luxury hotel, apartments, malls and office space covering a land space of 4.3-acres on a 99-year lease from the Urban Development Authority (UDA).
(Source: Sunday Leader)

Tuesday, 22 December 2015

Colombo Port City: “No insurmountable impact on the environment”, new EIA says

A (new) Supplementary Environmental Impact Assessment (SEIA) of the controversial Colombo Port City undertaken following demands from environmentalists for a proper EIA, has concluded in a report released this week that there is no ‘insurmountable impact” on the environment.
“On the basis of the detailed analyses … presented in this study and on the assumption that the recommendations for the mitigation of identified impacts are adopted and adequately implemented, it is concluded that there is no insurmountable environmental impacts associated with the construction of the reclamation and related protective works and the extraction of required material for the said construction – sea sand and quarry material,” the report, a copy of which was seen by the Business Times, said. The investor is the Hong Kong-based China Communications & Construction Company (CCCC).


(Source: Sunday Times)

Monday, 21 December 2015

Clear land and condo laws needed to attract foreign investment, CB Governor says

Ambiguous laws relating to ownership of land and condominium property rights in Sri Lanka can thwart foreign investment flowing into the country. Central Bank Governor Arjuna Mahendran said that land and condominium ownership in Sri Lanka is an issue that has to be addressed as legislation in this regard in recent times has regrettably become slightly muddied and unclear and this needs urgent repair for which the new government has made plans . He was speaking at the International Mayors forum held in Colombo last week under the theme of “Future Cities” as part of the 150 anniversary celebrations of the Colombo Municipal Council.


(Source: Sunday Times)

Land prices up 25 % in Colombo, suburbs

Land prices in and around Colombo have seen a near 25 per cent rise over the past few months and after the November budget, industry analysts say. With the low interest rates that prevailed during the year followed by currency depreciation, there was a natural increase in asset prices which was supplemented, according to them. “This was what was seen during the past 18 months and there was a high dmand for land. Colombo high end residential property has experienced a boom during this time,” an analyst added, noting that Colombo land prices have increased by about 25 per cent.


(Source: Sunday Times)

Monday, 23 November 2015

2016 Budget - Mansion tax, no tax on land leases for foreigners

The 2016 Budget proposes to remove taxes on land leases, ease restrictions on land transfer and no Mansion Tax for condominiums. 

Below are the relevant extracts.

Land (Restriction on Alienation) Act

The budget proposes to remove the tax imposed on the leasing of land to foreigners and also to consider the removal of restrictions on ownership on identified investments imposed through the Land (Restrictions on Alienation) Act, which has been an impediment for attracting investments to the country.

The key changes are:

(i) Restriction on transfer will be removed for certain identified investments.

(ii) Tax on leasing of lands will be removed.

(the relevant provisions of the Land (Restriction on Alienation) Act No. 38 of 2014 will be amended]

Mansion Tax (PART VIII of the Finance Act No. 10 of 2015)

(i) The mansion tax applicable on condominium units will be removed; and 

(ii) The first installment of the Mansion tax is payable on or before March 31, 2016. 

(PART VIII of the Finance Act No. 10 of 2015 will be amended)

Digital 'Land Bank'
The budget proposes to introduce a “land bank” which is an electronic database of state-owned lands. Subsequently, this database can be extended to contain records of the privately owned land as well.

Monday, 16 November 2015

Sri Lanka to ease land issues for investors

Sri Lanka government is reviewing existing laws on state-owned lands to broad-base ownership, relax the land use ceiling and remove restrictions on foreigners buying land. A new draft bill is now being prepared with the aim of providing provisions to provide ownership of land without being affected by the Land Restriction and Alienation Act.
Local and foreign investors as well as entrepreneurs will be encouraged to expand their businesses clearing impediments in obtaining land and buildings under the government’s mid-term economic plan.Restrictions on foreigners, companies and locally incorporated firms with over 50 per cent foreign ownership from buying land in the country will be removed.
(Source: Sunday Times)

Sri Lanka CT Holdings suspends Kotahena condo project

C T Holdings PLC has said it has suspended its joint venture property development project to build high-end condominiums in the Kotahena suburb of the Sri Lankan capital Colombo which has been subject to lengthy delays.

The drop in the group’s turnover and profitability of its real estate business in the September 2015 quarter has been attributed partly to “the deferment of the joint venture property development project undertaken with foreign collaboration,” it said.


(Source: EconomyNext)

Sri Lanka to restrict revocation of deeds of gift

Sri Lanka plans to draft legislations to make provision for revocation of irrevocable deeds of gift to provide greater security for lending institutions who lends money using property as collateral, cabinet spokesman Rajitha Senaratne told reporters on Thursday.
Health Minister Rajitha Senaratne said issues have been raised on the rights of donees as the Court of Appeal upheld a judgment of a District Judge wherein the court had held that a donor can revoke an irrevocable deed of gift by executing a deed of revocation without filing action and obtaining a decision of court.
(Source: LBO)

Thursday, 12 November 2015

Sri Lanka needs to lure big real estate investors, funds: Platinum1’s Kishore Reddy

Sri Lanka’s real estate market’s full potential needs to be tapped through big investments funds which can pave the way for the island to join its regional counterparts, a property developer said.
“The big real estate investment funds and investors have not come to Sri Lanka yet and some of them haven’t even heard of us yet,” Kishore Reddy, managing director, Platinum1said.
“They are yet to tap our market, but when this happens only then will Sri Lanka’s real potential in the sector will be seen.”
(Source: LBO)

Tuesday, 3 November 2015

Officials get ready to collect hundreds of millions in extra taxes

With six finance bills coming into effect from Friday, the Government is taking measures to collect hundreds of millions of rupees in taxes, Inland Revenue Commissioner General Kalyani Dahanayake said.

Mansion Tax
Rs. 1 million will be levied annually from owners of houses worth Rs. 100 million or more or houses with a floor area exceeding 5000 square feet. The tax would be collected through the local authorities. This will be in addition to local authority rates and taxes.


(Source: Sunday Times)

Monday, 2 November 2015

Prime Minister to propose scrapping ‘expropriation’ laws

Prime Minister Ranil Wickremesinghe is to propose scrapping controversial expropriation laws and some changes to land ownership laws during a special statement in Parliament on Thursday on the Government’s mid-term strategy.

The source added that when the government moves to acquire private property, bad signals go out. “The reasons may be justified, but the very intention of using state power to deprive legitimate owners of their property encourages and activates the worst elements. And this will not attract FDI.” Similarly, he said the Land (Restrictions on Alienation) Act restricting land ownership by foreigners, foreign companies and companies registered in Sri Lanka also deter FDI.


(Source: Sunday Times)

Indian real estate company Sandal Lands enters Sri Lanka with $10 mln investment

One of India’s leading real estate companies, Sandal Lands has entered Sri Lanka with an investment of US$ 10 million. The company is in discussions with the Urban Development Authority of Sri Lanka, said Sanjay Kathuria, Director of Sandal Lands at a media briefing in Colombo last week.
Mr. Kathuria said, “The initial phase of the investment will be US$ 10 million and later on we will go up to US$ 25 million.” Recently the company partnered with the government of Maldives and Sri Lanka is the second international market for Sandal Lands, he added.
(Source: Sunday Times)

Tuesday, 20 October 2015

Kingsbury signs Management Agreement with Platinum Realty

The Kingsbury PLC, the luxury five star city hotel in Colombo, has signed a Management Agreement with Platinum Realty Investments (Private) Ltd to manage its Platinum 1 apartment complex.
Platinum 1 is a 20 storey apartment complex located at No.1, Bagatalle Road, Colombo 3, comprising of 66 apartments plus 4 penthouses. The complex would have other residential amenities on the 4th floor- with a swimming pool, spa, gym, and restaurants.The property would be branded as “Platinum 1 by Kingsbury”, on the theme of “promise of luxury”, catering to the growing demand for luxury serviced apartments in the city of Colombo, the hotel group said.
(Source: Sunday Times)

Monday, 19 October 2015

Krrish to break ground for mixed development project soon

Indian real estate company Krrish Group will break ground soon for its long-delayed US$650 million mixed development project at Transworks House in Fort as the company has received the approval of the Urban Development Authority (UDA) last week to go ahead, local Krrish officials revealed.
The local company Krrish Transworks Colombo (Pvt) Ltd, a subsidiary of Indian real estate company Krrish Group, will launch construction of the proposed first and second phases of the project within the next two months, they said.
The company has paid Rs.4.4 billion out of the full lease payment of around Rs.5 billion to take over the 4.3 acre land on 99 year lease.
(Source: Sunday Times)

Monday, 12 October 2015

Sri Lanka to sign new deal with China Port City

Sri Lanka will sign an amended agreement with a Chinese company that is reclaiming the sea near Colombo, involving the Urban Development Authority with a committee tasked to make changes to the deal.

Sri Lanka has already granted a six-month extension to a temporary agreement signed with Sri Lanka Ports Authority and the CHEC Port City Colombo (Pvt) Ltd.

(Source: Sri Lanka Mirror)

Monday, 5 October 2015

Sri Lanka to see oversupply in the luxury property market

Supply is set to overtake demand at the high end of Sri Lanka’s residential property market, with a series of large-scale projects under way in and around Colombo.
The supply of luxury apartments in the commercial capital could reach 6000 units by 2018-19, according to a recent report by the Research Intelligence Unit (RIU), up from 783 in 2009 and 2657 this year.
(Source: OBG)

Monday, 28 September 2015

Seven bills to raise revenue through mega taxes

Finance Minister Ravi Karunanayaka has reintroduced the Finance Act (Amendment) Bill which seeks to impose the Mansion Tax and Migration Tax and the Super Gains Tax on a company or individual whose profit before tax exceeds Rs. 2,000 million.

This and six other bills aimed at raising state revenue were presented to Parliament by the Finance Minister this week amid opposition protests.

The Mansion tax will be imposed on every owner of a mansion constructed on or after April 1, 2000, at the rate of Rs 1 million per year, in addition to the rates and taxes charged and levied by any local authority, and shall be paid in four equal installments.
A Mansion has been described as “any building constructed on or after April 1, 2000, for residential purposes, of which the floor area is not less than 10,000 square feet as per the building plan approved by the local authority of the local authority area wherein such building is situated, or the value of such building, as at the first day of April of any relevant year, is not less than Rs 150 million, as determined by the Government Chief Valuer, or by an officer authorized by him, after making any adjustment as may be prescribed, and in the case of a condominium property , a condominium unit of such property shall be deemed to be a building for the purposes of part.
(Source: Sunday Times)

Friday, 18 September 2015

Port City Project agreement further extended

The Cabinet on Wednesday gave the nod to extend the agreement for the controversial Colombo Port City Development Project for a further period of six months, Cabinet spokesman and Minister Rajitha Senaratne said.

 “The period of the agreement signed between the Government and the relevant project company on September 16 last year expired on September 15 this year and hence a proposal had been made by Ports and Shipping Minister Arjuna Ranatunga to extend the bilateral agreement for six more months from September 15, 2015 and it was approved by the Cabinet of Ministers,” Dr. Senaratne told the weekly cabinet news briefing. 


(Source: Daily Mirror)

Sunday, 6 September 2015

Seagull directors indicted in HC for breach of trust

The Directors of Seagull Property Developers (Pvt) Ltd, a company which builds condominium properties for sale, have been indicted in the High Court of Colombo for breach of trust.
The case was called up this week before High Court Judge Lalith Jayasuriya. The indictment has been served by the Attorney General’s Department under Section 403 of the Penal Code for “cheating and dishonestly inducting a delivery of a property”.
(Source: Sunday Times)

Monday, 31 August 2015

EAP Group launches 5- storey Cinema Multiplex and Retail/ Commercial Complex at Rajagiriya

The Galaxy Impala is the first of a series of cinema multiplexes cum retail/commercial complexes that Galaxy Landmarks is planning to construct.The Galaxy Impala Complex will serve as an entertainment hub for the whole family and will feature 4 state-of-the-art cinemas with the latest digital technology, which will be operated by EAP Films & Theatres. The complex will also cater to the lifestyle requirements of customers by offering multiple storeys of shops with a range of branded items and high quality local products, as well as food courts and several fine-dining restaurants.


(Source: Sunday Times)

Sunday, 30 August 2015

Mega “Kandy City Urban Upgrading Project” on track to ease congestion

The joint venture between Engineering Consultants (Pvt) Ltd (ECL), Sri Lanka’s leading multi-disciplinary consulting company, and Keios Development Consulting of Italy, has been awarded the consultancy contract of the “Kandy City Urban Upgrading Project”implemented by the Strategic Cities Development Project (SCDP).
Keios provides planning, design and technical assistance services in the fields of urban development, cultural heritage and sustainable tourism, according to an ECL media release. The popular city of Kandy has many issues such as traffic congestion, lack of good pedestrian connectivity and vibrant public spaces, unplanned development, degradation of cultural assets, threats of landslides, lake shore erosion, and social challenges due to impending gentrification.
(Source: Sunday Times)

Saturday, 15 August 2015

China's man-made island takes shape in Sri Lanka

The Ocean seafood restaurant at Colombo’s five-star The Kingsbury was once famous for its magnificent view of the Indian Ocean. Its open-air wooden terrace that runs along the hotel’s western façade used to be so close to the beautiful coastline that waves lapped the rocks, sending sprays of sea foam into the air.
Not anymore.
The once popular ocean view is now a massive construction site of what is slated to become the most modern metropolis in South Asia, the Port City.
(Source: Channel News Asia)

Tuesday, 11 August 2015

Sri Lanka softens stance on China-backed port project

Sri Lanka is offering a compromise that could allow a major Chinese-backed real estate project to restart after months of delays, Finance Minister Ravi Karunanayake told Reuters on Monday.
The minister’s comments come a week before a parliamentary election in which the ruling party has an edge over an Opposition led by Mahinda Rajapaksa. The China-friendly ex-president, who was ousted in January, is attempting a comeback.
The $1.4 billion Colombo port city project was suspended by President Maithripala Sirisena’s new government in March because it was found not to have the proper permits and approvals.
(Source: Ada Derana)

Monday, 3 August 2015

Indian investor to build SL’s tallest building as a tribute to Arjuna’s winning world cup team

Shreepati Edifice (Pvt) Ltd, one of India’s biggest real estate development groups, plans to construct Sri Lanka’s tallest building in a tube-shaped structure as a tribute to Arjuna Ranatunga’s World Cup winning 1996 team.
The company signed an agreement with the Board of Investment (BOI) of Sri Lanka to invest US$ 330 million in this mixed development hybrid project called the “1996 Iconic Tower”.
In a media release, the BOI said the tower will be the tallest building in the country with 96 floors at an approximate height of 363 metres and when completed will have 376 residential apartments, 92 Penthouses and all modern amenities. It is anticipated that the tower will be completed within 48 months.
(Source: Sunday Times)

Monday, 27 July 2015

Deeds and misdeeds: 6,000 owners fall flat in condominiums

Owners of flats in a shocking 236 condominiums —a majority of them in Colombo — do not hold deeds to their properties, statistics show. These buildings contain nearly 6,000 housing units and have not been certified by the Condominium Management Authority for various reasons. As a result, their developers are prevented from lodging the Deeds of Declaration with the Land Registry, a procedure that would allow them to transfer ownership of the flats to respective buyers.
One of the main reasons why condominiums are not certified by the CMA is that local authorities have declined to issue certificates of conformity (COC) upon completion. This document offers proof that the buildings meet minimum regulatory, technical and safety requirements. CMA officials said many of the affected developers had deviated from approved construction plans midway. This precluded them from obtaining COCs, a mandatory requirement for CMA approval.
(Source: Sunday Times)

Monday, 20 July 2015

Dip in Sri Lankan property prices

There has been a dip in the Sri Lankan property prices for Q2 2015, according to the House Price Index published by Overall house sale prices, land sale prices and commercial building sale prices showed a dip; with only the apartment sales showing a slight increase of 0.7% compared to Q2 2014. 

The full House Price Index can be viewed from here.

Monday, 13 July 2015

Condo developers association formed in Sri Lanka

Developers in the condo market have come together to form the Condominium Developers Association of Sri Lanka (CDASL).
Founding council members of CDASL are Pravir Samarasinghe – Chairman (from Overseas Realty Ceylon Plc-ORL); S. Thumilan – Vice Chairman (Blue Ocean Residencies Pvt. Ltd); Hemaka De Alwis (Fairway Holdings Ltd); Suresh Rajendra (Whittall Boustead Pvt Lt); Prasanna De Zoysa (SMI Housing Development Pvt Ltd); Pinsiri Fernando (Suncity Property Developers Pvt Ltd); Kishore Reddy (Quest & Query Pvt Ltd); B. Premalal (Prime Land Pvt Ltd) and Lalitha Jayasooriya (Gampaha District Sanasa & Credit Cooperative Societies Union Ltd).
A media release issued by ORL on behalf of the association said its primary objective is to promote the interest of condominium developers in Sri Lanka, whilst working towards the development of the industry. CDASL is an affiliated association of the Ceylon Chamber of Commerce which was founded in 1839.
(Source: Sunday Times)

Monday, 6 July 2015

Sri Lanka’s Access Engineering buys property firms for Rs523.6mn

Access Engineering Ltd. said it has invested 523.6 million rupees to buy into two property companies developing land in a suburb of the Sri Lankan capital Colombo.

The construction firm invested 273.6 million for 100 percent control of Horizon Holdings Ventures (Pvt) Ltd., a company incorporated in June 2015, a stock exchange filing said.

Access Engineering also invested 250 million rupees for a 50 percent share in Horizon Holdings (Pvt.) Ltd., a firm incorporated in March 2014.

Both firms are in the business of developing their 12.5 acre property located in Malabe, a fast-growing suburb of Colombo.


(Source: EconomyNext)

Friday, 3 July 2015

Hyatt heist!

-Initial cost of Rs. 13 b doubles due to massive mismanagement including 
-Rs. 5 b EPF funds
-Former board had no formal meetings, contracts doled out with no tender procedure 
-Rs. 300 m spent on H’tota Hyatt even before start, project to be cancelled by new officials 

-Colombo Hyatt to open by 2017 after three-year delay

A forensic audit into the Hyatt hotels in Colpetty and Hambantota has uncovered mass fraud resulting in initial cost estimates more than doubling from Rs. 13 billion to Rs. 27 billion and the company facing a shortfall of nearly Rs. 9 billion to complete the project, its new director board said yesterday.  


(Source: Daily Mirror)

Criminal probe for Sri Lanka Insurance Corporation, Litro Gas hotel deal

Sunday, 28 June 2015

New Govt. clears Krrish deal: Preliminary work starts

The new government, largely controlled by the United National Party (UNP) whose parliamentarians were vociferous against the Krrish deal when they were in opposition, has given the go ahead to the Indian-based company to commence the long delayed and controversial Krrish Square mixed development project, a top official confirmed.

Urban Development Authority (UDA) Chairman Ranjith Fernando told the Business Times that preliminary work on the project at the prime 4.3 acre land which housed the Transwork House, a British era heritage building in Fort, has begun following the clearance given by the government despite the Krrish group still not paying the final due of Rs.589.7 million with accumulated interest at 12 per cent.

(Source: Sunday Times)

Port city project to start soon: Arjuna

Work on the Colombo Port City project will begin soon as it has not been cancelled, Ports and Shipping Minister Arjuna Ranatunga informed Parliament yesterday. 

The Minister said work on the project was suspended as there were some serious issues pertaining to the legality as well as environment issues. He said a legal issue did exist on the ownership of the port city land which had been given to China though there was no legal provision for such a move. He said land could only be leased out according to the law. However he said these issues would be resolved soon. 


(Source: Daily Mirror)

Friday, 19 June 2015

Colombo Port City To Resume After Evironmental Clearance

The Sri Lankan cabinet has decided to consider clearing the USD 1.4 billion Chinese funded and executed Colombo Port City Project after it gets environmental clearance.

Announcing this to the media in Colombo on Thursday, the cabinet spokesman, Rajitha Senaratne, said that the cabinet also decided to take the project away from the Sri Lanka Ports Authority (SLPA) and hand it over to the Urban Development Authority (UDA).


(Source: Asian Mirror)

Thursday, 18 June 2015

Mansion tax could be approved in next parliament, if not this - FM

If Parliamentary approval cannot be obtained for the Super Gains Tax, the Mansion Tax etc introduced by the new government’s interim budget, it could be obtained in the next parliament and hence no issues would arise over their legal aspects, said Finance Minister Ravi Karunanayake.
The Finance Minister added that though these taxes have been included in the Order Paper of Parliament the Opposition was obstructing their progress.
(Source: Ada Derana)

Sunday, 14 June 2015

Maldivian Firm Mulls US$ 35M Hotel Project In Kalpitiya

Maldives-based Sun Siyam Group, owned by Maldivian Parliamentarian and philanthropist Ahmed Siyam Mohamed, is confident of completing upmarket Maldivian-styled tourist resort in the Vellai Islet of Kalpitiya within the next two years.
“We hope to complete our second project in Sri Lanka, a 150-room hotel in Kalpitiya at a cost of US$ 35 by 2017.  The Passekudah Sun Aqua property which was opened recent was our first-ever property in Sri Lanka and was built at a cost of US$ 11 million,”  Siyam Mohamed told the Sunday Leader, on the sidelines of the Hospitality Investment Conference Indian Ocean held this week in Colombo.

(Source: Sunday Leader)

Thursday, 11 June 2015

Instructions from PM to stop acquisition of lands in the Colombo District by force and evacuation of residents from their houses

Prime Minister Ranil Wickremesinghe has instructed the Urban Development Authority chairman to immediately stop acquiring Colombo District lands by force and evacuating people from their houses under the pretext of development.

Issuing a communiqué the Prime Minister said that if land acquisition was necessary a systematic humane methodology should be formulated with the participation of the MPs and advice of civil society of the area.


(Source: Hiru News)

Friday, 5 June 2015

Casino Ban Fails to Deter Developer’s Postwar Sri Lanka Plan

A ban on casinos by Sri Lanka’s new government isn’t stopping the nation’s biggest conglomerate from pressing ahead with a $850 million development project as the island rebuilds from a 30-year civil war.
Lenders are fully committed to John Keells Holdings Plc.’s Waterfront Properties mixed development project in Colombo though the absence of a casino may take some sheen off it and dent revenue, Chairman Susantha Ratnayake said in an interview.
(Source: Ada Derana)

Biz community renews calls for revised Land Act

Sri Lanka’s business community renewed their calls to revisit the controversial Land Act enacted by the former regime limiting foreigners and foreign-owned corporates to outright owning lands, as it acts as a major deterrent to lure the much-needed foreign direct investments (FDIs). 

“We are of the view that the ambiguity inherent in the Act and the uncertainty it creates as a result will be deterrents to capital formation and foreign direct investment in Sri Lanka and therefore, require urgent review,” John Keells Holdings PLC (JKH) Chairman Susantha Ratnayake said in his annual review. 

The Land (Restrictions on Alienation) Act was passed in Parliament last October limiting the purchase of land by foreigners and entities with over 50 percent of foreign ownership with retrospective effect from January 1, 2013. 


(Source: Daily Mirror)

Monday, 25 May 2015

Singaporean firm steps in again to rejuvenate Colombo city development plan

A Singapore urban development consulting company, Cesma International re-branded as Surbana, is now engaged in Colombo city master-planning and redevelopment work to build a ‘megapolis’ in Sri Lanka’s Western Province, Urban Development Authority Chairman Ranjth Fernando told the Business Times.

According to the proposal, Fort, Pettah, Kollupitiya and Maradana with a total land area of over 1,033 hectares were envisaged as the New Downtown containing the Business and the Financial District. Slave Island and Galle Road were to be the shopping areas.


(Source: Sunday Times)

“Kadawunu Poronduwa”: Krrish breaks its promise, again!

The Board of Investment (BOI), with Krrish failing to fulfil its latest promise of completing the full payment by March on leasing the 4-acre Transworks Square land in Colombo Fort, is considering several options including legal avenues to recover the payment or end the project.


(Source: Sunday Times)

Go-ahead given to stalled TATA housing project in Slave Island

Construction work on the US$429.5 million mixed development and housing project at Slave Island undertaken by India’s Tata housing, the real estate arm of the Tata, is now underway.


(Source: Sunday Times)

Shangri-La Residences debuts in Colombo

Hong Kong-based Shangri-La Group launched its luxury residential project on Friday at Galle Face Colombo eyeing to tap local and foreign buyers for exclusive residences in the city, officials of the company said. Construction work on the two 50 floor residential structures is now underway and will be completed in 2018, a spokesman of Shangri-La Hotels Lanka Ltd said. 


(Source: Sunday Times)

Monday, 11 May 2015

Price of land and vehicles need to displayed: CAA

The Consumer Affairs Authority (CAA) yesterday emphasized the need to display the price of properties and vehicles that are up for sale.

The Authority said the display of prices was a necessity under paragraph 26 of its Act.


(Source: Daily Mirror)

AVIC Signs on Renowned Contractor for Completion of Astoria Luxury Condominiums

Astoria, a luxury condominium development that aims to set a new standard in the luxury living style of Colombo will soon be at the heart of Sri Lanka’s business capital, offering residents a truly indulgent experience. AVIC – a Fortune Global 500 enterprise and the developer of Astoria announced its decision to sign on China State Construction Engineering Corporation Limited (CSCEC) as its official and main contractor. CSCEC is another Fortune Global 500 enterprise and is well-known as the top home builder in the world. The partnership between AVIC and CSCEC seeks to introduce this project to the Sri Lankan real-estate market by the end of 2017.  


(Source: Hiru News)

Saturday, 18 April 2015

A land racketeer who sold property island wide under fake deeds arrested

The CID has uncovered a massive land and motor vehicle racket carried out under fake documents.

The mastermind behind the racket has been identified as Vidura Saman Gunarathne of Subhadrarama Mawatha in Gangodawila.

Police Media Spokesman ASP Ruwan Gunasekera said that after lengthy investigations, the CID was able to arrest 5 suspects including the mastermind of the racket.


(Source: Hiru News)

Monday, 13 April 2015

Why so many land sales Colombo in these days?

Sales and transfers of land are taking place in Colombo at a fast rate these days.
Between 200 and 250 new registrations a week are happening at the land registry office in Colombo, say sources there.
The owners of a majority of these plots of land are relatives of wealthy businessmen.
(Source: Sri Lanka Mirror)

Monday, 23 March 2015

Facilities to pay ‘Mansion Tax’ in installments

The Sri Lankan government has amended the tax regulations to enable the ‘Mansion Tax’ introduced by the interim budget to be paid in four installments.
According to the amendments, the government has stated that an annual ‘Mansion Tax’ would be imposed on houses valued at more than Rs. 150 million or of floor area of more than 10,000 square feet, constructed after 01 April 2000.
(Source: Ada Derana)

Sunday, 1 February 2015

Sinolanka deal of Celestial Residencies opens can of worms

The deal involving the takeover of ownership of Celestial Residencies, one of the valuable and iconic properties of the failed Ceylinco Group, three years ago from the then government by Sinolanka Hotels and Spa (Pvt) Ltd has opened a can of worms, following a complaint lodged by Deputy Minister of Planning and Economic Affairs Harsha de Silva at the Bribery or Corruption Investigation Commission this week. Silva in his complaint made a request from the Bribery Commission to investigate the corrupt incident of the previous government taking over the massive 47 story building being constructed opposite Temple Trees from the collapsed Ceylinco Group and selling it to Sino Lanka for a bid of Rs. 375 million while Ceylinco Shriram, another failed entity of Ceylinco, had already received a bid for Rs. 7.5 billion.
(Source: Sunday Times)

Mansion tax to be revised; requires fine-tuning

The Government’s mini budget proposal to impose a ‘mansion tax’ of one million rupees on houses that are worth more than Rs. 100 million or having 5,000 square feet will be revised, Finance Minister Ravi Karunanayake said yesterday. “There is considerable confusion over this levy. People have asked me what happens to large ancestral homes that have been coming down from family to family for generations,” he told the Sunday Times.

(Source: Sunday Times)

Saturday, 31 January 2015

'Mansion tax' plan yet to be formulated

Deputy Minister of Policy Planning and Economic Affairs Dr. Harsha de Silva has said that a criteria to charge the 'Mansion tax' is yet to be formulated. In the interim budged presented on 29th January a new tax, dubbed the 'Mansion tax' of 1 million Rupees per annum was introduced on homes worth more than 100 million Rupees (1000 lakhs) or with an area greater than 5000 square feet.

The Deputy Minister further said that this tax is aimed at "those who built luxury houses in the recent past in Colombo" and "not for villas that were built in the past that have been passed down the generations". He further went on to add that "though there are large houses, sometimes the retirees who live in those houses don't even posses 10,000 Rupees, let alone 1 million Rupees" and that these situations will be taken in to consideration when formulating the plan. 

The Deputy Minister went on to add that "we're also hoping to come up with a system that will charge the million rupees in a just manner with a feasible plan".

Meanwhile, the Minister of Finance Ravi Karunanayake speaking on the 30th of January further clarified the 'Mansion tax' by saying that the tax will "not apply to apartments except Penthouses". He also said that "This tax is for those houses that came up within the past five to six years" and that they are still working on the definition for the 5000 sq. ft. rule. 

Friday, 30 January 2015

Mansion, Exit, Super Gain taxes introduced

A new Mansion tax has been introduced by the Government, Ravi Karunanayaka said a short while ago. Mansion valued at over Rs.100 million or comprising over 5,000 square feet will be taxed Rs.1 million per house.

All Sri Lankans who migrate to another country will be liable for a 20% exit tax, Karunanayaka added. He also added that a super gain tax of 25% will be applicable for organizations that record a profit of over Rs. 2000 million.
(Source: Ada Derana)

Bribery case against Hyatt Regency project

Deputy Minister of Policy Planning and Economic Development Dr. Harsha De Silva yesterday lodged a complaint with the Commission to Investigate Allegations of Bribery or Corruption with regard to the Hyatt Regency Hotel Project in Kollupitiya claiming there had been multiple corrupt deals with regard to the transactions involved in the project.

Dr. De Silva who came out with the deals one by one said the project which belonged to Ceylinco Shriram earlier had been sold to Sino Lanka Hotels and Spa Ltd for Rs. 350 million by the committee appointed to provide redress to the Ceylinco depositors though there was another bid for Rs 7.5 billion. 


(Source: Daily Mirror)

Tuesday, 27 January 2015

Man who used forged property records in real-estate fraud arrested

The Criminal Investigations Department (CID) has arrested an individual allegedly responsible for cheating millions from unsuspecting victims by forging deeds and selling properties in various parts of the country.
Police spokesman SSP Ajith Rohana said that the arrested suspect had obtained citizenship in Norway.
The suspect had forged records and sold properties in various parts of the country which he had no ownership of.
The police spokesman requested victims of the real-estate fraud suspect to notify the CID immediately regarding their dealings with him.  

(Source: Ada Derana)

Sunday, 25 January 2015

“Our plans are still on,” says Krrish official at the office reception

Officials at the controversial Krrish project in Fort, which is yet to receive the full payment for it to get off the ground, say their project is still on.
The project has been suspended for many years as a final payment amounting to 10 per cent of the full lease and interest payments thereafter for payment delays.

With the entry of a new government and speculation about the future of this project which drew allegations of corruption by certain government officials, a charge strongly denied by the company, this reporter visited the Krrish office on Level 35, West Tower World Trade Centre Echelon Square in Colombo on Thursday.


(Source: Sunday Times)