Lanka Property Watch - Sri Lanka Property Investment and Analysis

Expats, key to condominiums

2012-01-29T04:51:00.003+05:30

Although the overall trend in Sri Lanka’s luxury real estate segment remains positive, caution needs to be exercised with respect to two fundamental market determinants in the real estate industry, warns a recent research report. According to the recent research report titled ‘Sri Lanka Real Estate Market Brief’ done by KPMG in association with Research Intelligence Unit (RIU), since, there are a finite number of expatriate Sri Lankan’s living in the West who have already been at the frontline in picking up luxury apartments since the end of the civil war, the peak levels of their interest in Sri Lankan real estate maybe either fast approaching or even possibly behind us in which case the rate of demand growth is likely to slow down.

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(Source: The Nation)

India's ITC, franchisee for the US-based Sheraton leisure group pays 50% of the lease for luxury hotel

2012-01-29T04:47:00.001+05:30

India's ITC Ltd, franchisee for the US-based Sheraton leisure group, has finalized its hotel land deal with the Sri Lankan government paying 50% or US$73.5 million for the 5-acre plot of land opposite Galle face Green in Colombo, Minister of Economic Development Basil Rajapaksa said.

International investors including-Shangri-La Group, CATIC (China), the Minor group (Thailand) and M-Far Hotels (Oman) and ITC (India) have committed substantial investments in Sri Lanka while Six Senses Hotels, Banyan Group, Accor Hotels, and Dusit (Thailand),) have either invested or are currently exploring opportunities to make investments, officials said.

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(Source: Sunday Times)

Qatar interested in host of investments

2012-01-23T06:28:00.000+05:30

Qatar Holdings, the investment arm of the Qatar Investment Authority of the Government of Qatar (which is Qatar's sovereign wealth fund) together with Qatari Diar Real Estate Investment Company, their real estate arm, are interested in a host of investments ranging from building villas in Kalpitiya, real estate development, to horticulture and highways, according to officials.

"They are also interested in the Colombo Commercial Property (CCP) at Sir James Peiris Mawatha, and a host of sites in the South for hotel projects,” according to the official. This also includes building five hotels.“They are especially interested in securing in the Kalpitiya Tourism Zone (KTZ) some large islands. They want to build five resorts in the North-West and the East coasts," an External Affairs Ministry official told the Sunday Times. He said that the preparatory team ahead of Sheikh Hamad bin Khalifa al-Thani, Emir of Qatar’s visit last Sunday, had visited Kalpitiya, and also inspected lands in Colombo for real estate development and a mega mall complex.

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(Source: Sunday Times)

Foundation stone for Colombo Lotus Tower laid

2012-01-23T04:28:00.001+05:30

The tower will be constructed at the Beire Lake waterfront and alongside a part of D R Wijewardene Mawatha. The 350 meters tall Tower is being built under the auspices of the Telecommunication Regulatory Commission of Sri Lanka (TRCSL) on a plot of land covering 3.06 hectares.

When this is completed it will be a striking city symbol and an important landmark by becoming the tallest Tower in South Asia. This is a free standing tower with a four-storey high podium; a concrete tower shaft of moderate diameter; eight storied tower head; and a steel framed antennae mast surmounted at the top.

The Tower will provide for telecommunication and leisure activities, and will facilitate the relaying of at least 50 separate broadcasting and telecasting services, provide facilities for about 20 service providers in telecommunication relay defence signals and indirectly contribute to the removal of high powered TV and FM antennas placed on top of various buildings in the Colombo city.

The tower podium will also house a telecommunication museum, food courts, administrative offices exhibition spaces and corresponding amenities and tower shaft will be a hollow concrete cylinder accommodating high-speed lifts and stairs for vertical circulations and ducts for various type of building services.

The tower head will comprise eight floor levels accommodating an Observation Deck, Revolving Restaurant, and Banquet Hall for 1000 guests as well as two floors of super luxury hotel accommodation.

The total estimated cost of the project is USD 104.3 million.

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(Source: defence.lk)

SLT says shortage of tourist rooms

2012-01-23T04:20:00.004+05:30

Sri Lanka Tourism is currently facing a crisis due to the dearth of rooms to accommodate foreign tourists visiting the country, Deputy Tourism Minister Lakshman Yapa Abeywardena said. With rooms being targeted for construction to meet the growing demand of increased tourist arrivals to Sri Lanka, it was pointed out at a media briefing held in Colombo on Tuesday on the topic of “Sancharaka Udawa” that the industry was fighting hard to provide adequate accommodation for visitors, the deputy minister said.

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(Source: Sunday Times)

50% of Colombo condos sell out pre-construction : report

2012-01-23T04:17:00.004+05:30

Most condominiums (considered luxury real estate) in the country's business capital of Colombo experience an average pre-construction sale ratio of around 50%, according to a report by the local office of global big four audit firm KPMG, in conjunction with Research Intelligence Unit (RIU).

The report titled 'Sri Lanka Real Estate Market Brief', said that "more prestigious developments like the Empire, Emperor, Lumiere and Trillium tend to sell around 80% of their units by completion of construction. Meanwhile, the established buildings like Royal Park and Iceland Residencies have very few apartments available for sale or re-sale."

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(Source: Sunday Times)

SOUTH AFRICA’S SUN CITY TO INVEST $800M IN SRI LANKA TOURISM

2011-12-31T02:02:00.003+05:30

South Africa’s Sun City resort will invest $800 million in a tourism project in Sri Lanka, the head of the island nation’s state-run Tourism Board said on Friday.

Sun City resort is run by South African gaming and hotels group Sun International Ltd.

It will be the largest ever investment in the country’s leisure sector, which is booming since the end of a 25-year war.

“Sun City of South Africa is now going to make an $800 million investment in a 200-acre private property,” Nalaka Godahewa, head of the Tourism Board told Reuters in an interview.

The investment will be made on Sri Lanka’s hotel city in Katana, a coastal town located 15 km north of Colombo, he said

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(Source: Ada Derana)

Sri Lanka Repeals 100% Land Tax on Foreigners

2011-11-22T03:05:00.001+05:30

The Sri Lankan government is scrapping the 100 percent tax levied on foreigners buying land in that country in favor of a new special land tax to be unveiled in the 2012 budget.

The new tax will remove restrictions on foreigners buying and developing land anywhere in the country, and will also close loopholes which have allowed many foreigners to buy land in Sri Lanka tax free. It is also thought that removing the tax will increase tourism and property sales to foreigners. The overall aim of the decision is to increase the revenues coming into government coffers from the sale of land to foreigners, sources from the Finance Ministry told reporters.

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(Source: The Epoch Times)

Sheraton to build hotel in Sri Lanka's capital Colombo

2011-11-14T05:28:00.001+05:30

Sheraton Hotels and Resorts, the largest Starwood Hotels and Resorts Worldwide brand, will build a hotel in the Sri Lankan capital on land originally offered to a Chinese firm, a government official said on Sunday.

The island nation's junior economic minister said the government has completed negotiations with Sheraton to allocate the land, earlier offered to China National Aero Technology Import and Export Corporation (CATIC).

Last month, Sri Lanka annulled a $500 million investment deal with CATIC after it refused to sell the beach front land outright to the state-run Chinese conglomerate as agreed earlier.

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(Source: Daily Mirror)

Dispute with CATIC over Galle Face deal

2011-10-30T17:54:00.003+05:30

The Chinese investor in a multifunctional complex near Galle Face Green has refused their advance payment (to the government) after the government‘s policy decision that land will not be sold outright to them.
CATIC or China Aviation Technology Import-Export Corporation has said that instead it would require land on outright purchase terms. It has said it did not favour a 99-year lease for the same property.
Its demand comes amidst conflicting legal positions taken by the Chinese aircraft manufacturing firm and the government. CATIC has threatened to seek legal relief on the grounds that assurances of an outright sale of land were given to it. It also cites the case of Shangri-La Hotels, a project for which land encompassing the Army grounds has already been given.

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(Source: Sunday Times)

Govt. plans land audit

2011-10-16T23:23:00.003+05:30

The Government is planning a comprehensive audit of the country‘s public and privately-held land assets. The public sector property audit will be conducted under the first phase of this initiative. The Ministry of Lands and Land Development will present a paper indicating modalities of a full audit of state and private land covering a wide spectrum of issues including updating of land records; survey, demarcation and protection of lands; efficient use of land; encroachment of land, the extent and reasons thereof, effectiveness of encroachment and removal actions.

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(Source: Sunday Times)

Colombo waterfront lands adjoining Beira Lake up on lease on instalment cum upfront payment

2011-10-09T16:44:00.003+05:30

The government is offering prime Colombo land at a mix of an installment cum upfront payment basis for a 99 year lease deal, a top official said. Prime, urban waterfront land adjoining the Beira Lake at D. R. Wijewardena Mawatha, Colombo 10 will be made available for development transforming the area as a leisure and entertainment hub of Colombo.
With basic infrastructure already existing, the terms of allocation of the crown land are long-term or 99 year leases at market value. Nihal Fernando, Director-General, Urban Development Authority (UDA) said that a considerable percentage of the land value has to be paid at the time of assessing the land and the balance should be paid in continuous installments within a period fixed by the (UDA). “ The former UDA head office at D.R. Wijewardena Mawatha which has five acres will also be offered for local or foreign investors for development,” he told a representative audience at a knowledge sharing conference on the role of real property development in an emerging economy in Colombo on Thursday. "The Beira Lake would be dredged and the water would be cleaned along Vauxhall Street to ensure a clean environment," he said.

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(Source: Sunday Times)

Govt accuses opposition of blocking Galle Face Land sale

2011-09-19T20:43:00.000+05:30

With the Cabinet having approved the 99-year lease on seven acres of prime land near the Galle Face Green to the China National Aero-Technology and Export-Import Corporation (CATIC), the government valuer has been directed to work out the lease payments, Economic Development Deputy Minister Lakshman Yapa Abeywardana said yesterday.

He accused the main opposition United National Party (UNP) and the Janatha Vimukthi Peramuna (JVP) of having compelled the government to change its earlier decision to sell the property outright at US$ 94.5 million or at nearly Rs.10 billion and thus having to forego the direct receipt of foreign exchange.

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(Source: Daily Mirror)

Asia Capital's leisure arm to add Wadduwa, Balapitiya beach hotels, 50 rooms

2011-09-19T15:41:00.003+05:30

Asia Leisure's, plans to add two new beach properties, one in Wadduwa and the other in Balapitiya, over the next seven to eight months, which will add about 50 more rooms to the company's existing portfolio of hotels, which presently encompasses boutique hotel properties in Nuwara Eliya, Colombo, Balapitiya and Galle.

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(Source: Sunday Times)

South Asia’s biggest construction fair in Colombo next year

2011-09-19T15:40:00.003+05:30

Construction Expo 2012 – International Exhibition and Symposium (CE2012), touted as one of the biggest and comprehensive exhibitions on construction in South Asia will be held in June next year at the BMICH, it was announced this week in Colombo. CE 2012 is organized by Ceylon Institute of Builders (CIOB) – the oldest body in construction industry in Sri Lanka together with Lanka Exhibition and Conference Services (Pvt) Ltd (LECS).

At the launch of the forthcoming event, Wimal Weerawansa, Minister of Constructions, Engineering Services, Housing and Common Amenities said that according to the Central Bank the construction industry is now contributing 9 % to the GDP and the growth next year would be 11 %.

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(Source: Sunday Times)

Sri Lankan homes to generate room capacity for tourism industry

2011-09-19T15:39:00.002+05:30

Sri Lanka’s home stay concept initiated by the tourism industry is due to be launched next month and expected to generate about 1000-1500 rooms immediately.

Sri Lanka received 654,000 tourists in 2010, which is expected to top 750, 000 this year. In this regard the home stay and bungalow programme is expected to generate about 1000-1500 rooms immediately, a media release states.

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(Source: Sunday Times)

100% land sale tax for foreigners to be scrapped

2011-09-19T15:19:00.002+05:30

Sri Lanka will scrap the 100% tax on foreigners buying land, to promote foreign investment and tourism. The Government instead plans to introduce a special land tax in the 2012 budget removing existing barriers in the sale of land to foreigners and foreign companies to develop land in any part of the country. This will bring more revenue to government coffers, Finance Ministry sources said.

The new land tax, the amount of which is yet to be finalised, is aimed at preventing the sale of land at inflated prices to foreign buyers, making huge profits completely tax free and thereby cheating the government of revenue while also breaking immigration laws. Whenever there’s a prohibitive tax in place, foreign investors find a way around it and Sri Lanka is no exception, a senior official of the Finance Ministry, said

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(Source: Sunday Times)

Revised Galle Face deal offered to Chinese firm

2011-09-05T19:08:00.001+05:30

Outright purchase changed to 99-year lease, but questions over CATIC’s acceptance

The Cabinet has now given approval for a 99-year lease of seven acres of prime land near Galle Face Green to China National Aero Technology and Export Corporation (CATIC). This is after reversing an earlier decision for the outright sale of the land for around US dollars 125 million (or about Rs 13.7 billion). It is not immediately clear whether CATIC — China’s aircraft manufacturing and marketing firm — would accept the offer or demand that its money be refunded. CATIC is learnt to have already remitted to the Treasury the amount involved.

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(Source: Sunday Times)

Sanken, JKH JV on 240-room business hotel in Colombo

2011-09-05T19:00:00.001+05:30

John Keells Holdings (JKH) plans to develop a total of 1000 rooms of the business-leisure segment in Colombo and, as part of this strategy, has joined up with developer Sanken Lanka Pvt Ltd to build a business hotel in Colombo.

The duo are investing in a 25 storey, 240-room business hotel worth Rs 2.9 billion in the heart of Colombo, with Sanken being the major shareholder and JKH having a minority stake while Keells Hotel Management Services will be the hotel operator, according to a JKH statement.

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(Source: Sunday Times)

SRI LANKA THE CHEAPEST PLACE IN THE WORLD TO BUILD

2011-08-26T21:23:00.000+05:30

Sri Lanka and India are tied as the cheapest countries in which to build with construction costs estimated to be 72% cheaper than the UK baseline, according to one consultancy group study.

The current economy plays a significant role, but analysts contend supply chains and other logistical issues faced by these countries also act to raise costs.

Sri Lanka was also the cheapest country in the 2010 edition of the report with the cost of construction just 27% of the UK.

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(Source: Adaderana)

Jaffna's property prices surge as peace returns

2011-08-26T15:50:00.002+05:30

Selvarajah Ragunathan greets me warmly at his Jaffna home. His face is kindly but furrowed with sadness.

He lost his brother and sister in the early years of the civil war, more than 20 years ago.
Like many others, he left his rural home when the army took over the land.
He worked for years in the Gulf but could not save much. Now he rents this place in the city - a quite spacious house with a garden, where he lives with his wife and their 21-month-old son, Adchayan.

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(Source: BBC)

CID probes big frauds in house and property deals

2011-08-24T03:12:00.002+05:30

The Criminal Investigations Department (CID) has assigned a team to track down racketeers behind illegal house or land transactions, a senior officer said. The probe comes on a directive from Defence Secretary Gotabaya Rajapaksa amidst an increasing number of complaints, some of which he had received personally.

The CID will probe cases of persons illegally acquiring houses on forged documents, cases of driving out the owners by force, extorting money from owners of houses and cases of selling or mortgaging lands owned by others, the officer said.

Among the victims have been persons who have migrated few years ago and returned recently.
Complaints could be made by calling 011-2320141 -5. Fax – 0112380380.

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(Source: Sunday Times)

Sri Lanka Aitken Spence plans eastern resort

2011-07-04T21:28:00.000+05:30

Sri Lanka's Aitken Spence group, which runs resorts in Maldives, India and Oman is in talks with two international chains to find a joint venture partner to build a 100 million dollar leisure complex in the island's east coast, an official said.
The complex will be made up of two hotels, residential villas and entertainment facilities. One hotel will be built by Aitken Spence under its flagship 'Heritance' brand and the second will be built by the joint venture partner.
The group owns 108 acres of beachfront property in Nilaveli in Sri Lanka's eastern coast.

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(Source: LBO)

Sri Lanka: International property developers eyeing Colombo’s prominent land

2011-07-04T21:24:00.000+05:30

Sri Lanka’s one of the premier properties located in Colombo, owned by a family run listed company is likely to be developed as a mixed development project, a Colombo stock market analyst said.
It is anticipated by market sources that several international Real estate developing companies are eyeing to develop one of Colombo’s premier properties; freehold land at 41, W.A.D. Ramanayake Mawatha to be developed as a commercial and a residential project.

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(Source: Asian Tribune)

First ever 7 star property to commence business in 2012

2011-07-04T21:20:00.002+05:30

Lanka’s first ever 7 star leisure property, the much awaited unique “Isle of Agnes” brain child of PJ Group Chairman Prasanna Jayewardene hopes to open for business next year.
“It will be one of a kind and aspires to be so on an international level” says PJ Group official Amara Galagoda. “ Though they will miss fellow creator of ‘The Elephant Corridor Hotel’ Susanne Filippin who is now settled in her native Europe, our chairman hotelier with 40 years of experience in 10 countries still has the other co-creator of ‘Elephant Corridor’ Anton Jacob who has vast International experience with him on this project as well” she said.

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(Source: Daily Mirror)

Plan for luxury city suspended

2011-07-04T18:27:00.002+05:30

Cabinet committee to review project amidst fears over possible loss of Galle Face

The US$ 700 million Chinese-backed 500 acre project to create a new city on reclaimed land from the sea overlooking the Galle Face Green, exclusively revealed in The Sunday Times last week, has been suspended.
A high-ranking source said yesterday that the move followed a “high-level” order and added that the matter would now go for scrutiny before the standard Cabinet Appointed Review Committee. “They will determine whether or not the project proposal should be accepted by the Cabinet,” the source said.
The move, the source pointed out, was the direct result of revelations made in the Sunday Times.
The source declined to comment on who had issued the suspension order or whether other proposals, if any, would be subjected to Cabinet scrutiny.

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(Source: Sunday Times)

Sri Lanka seeks developers for prime property

2011-07-01T00:57:00.000+05:30

Sri Lanka is searching for a buyer for a block of prime beach front land adjacent to two that are slated to be among the largest real-estate cum hotel developments to start in the country after the end of a 30-year war, officials said.
"The land is still available," deputy economic development minister Lakshman Abeywardene said. Sri Lanka sold 10 acres of land to Hong Kong based Shangri La for 125 million US dollars in the 'Galle Face' beach front, shifting military installations that occupied the land.
Another 10 acres of land were given to CATIC, a Chinese defence contractor, for 136.5 million dollars, Abeywardene said. The two investors are expected to build 500 million dollar mixed hotel, shopping and apartment complexes.

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(Source: LBO)

Careful when buying land - Minister

2011-07-01T00:56:00.002+05:30

Minister of Lands and Land Development, Janaka Bandara Tennakoon today warned people asking them to be extra careful when buying lands in certain districts. He added that there were a lot of Government lands in the below mentioned Districts and that he was made to aware of a racket where state lands were being sold.

The Minister added that the racketeers were showing fake deeds to entice buyers.

The Districts are Puttalam, Anuradhapura, Rathnapura, Moneragala, Nuwaraeliya, Ampara, Trincomalee and Hambantota.

(Source: Ada Derana)

Sale and no more land leases for foreigners

2011-06-27T16:52:00.002+05:30

Legislation is being introduced to remove existing legal impediments in the sale of land to foreigners and foreign companies to develop state land in major towns occupied by people illegally.
These people are now being evicted, government officials said. The current system of levying a 100% tax on land transfers to foreigners will be removed by introducing a special land tax in order to prevent the sale of land at inflated prices to foreign buyers, making huge profits completely tax free and thereby cheating the government of revenue while also breaking immigration laws.
Under the present system, a foreigner or a foreign company can buy tax-free land if their investment for the whole project is over US$10 million.
Foreigners are now allowed to own land in Sri Lanka with some restrictions. The purpose of this 100% tax is to discourage foreigners acquiring properties in Sri Lanka. However a joint venture company incorporated in Sri Lanka (with foreign participation) is not liable to pay that tax. Furthermore the condominium units of residential or non-residential accommodation on or above the 6th floor of a registered condominium apartment constructed with the approval of the UDA are exempt from such 100% tax, the Finance Ministry official said.

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(Source: Sunday Times)

Chinese to build luxury port city off Galle Face

2011-06-27T16:36:00.002+05:30

Govt gets US$ 700 million offer for 500-acres of sea land

China which has been increasingly involved in Sri Lanka’s economy, has secured another lucrative deal — creating a new 500-acre, port city on reclaimed land on the sea off the Galle Face Green. A top Government source, who declined to be named due to the sensitivity of the deal, said the government had agreed to the US$700 million offer from a Chinese investor. The offer has been channelled through Chinese authorities.

The Sri Lanka Ports Authority will oversee the reclamation project which will be divided into three segments -- business, residential and leisure. A mini-golf course, a Formula One race track, a small yacht marina and areas for water sports will be created. The feasibility study and an environmental impact assessment conducted by the Sri Lanka Ports Authority and the Moratuwa University have been completed.

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(Source: Sunday Times)

Eastern destinations to propel Sri Lankan tourism growth

2011-06-27T16:34:00.001+05:30

Several hotel projects and tourism-related infrastructure are fast coming up in Eastern Sri Lanka, once ravaged by war, to propel the country to surpass its last year's tourist arrivals by a wide margin.
East Sri Lanka has some of the best beaches in Trincomalee (Uppuveli beach) and Batticaloa (Pasikuda), and off Ampara (Arugam Bay). In Pasikuda alone, 14 new hotel projects are coming up, with a total capacity of 1,000 rooms. Most projects have a gestation period of just over a year. The first one off the block, Maalu Maalu (meaning fish), has just opened for business.

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(Source: The Hindu)

Defence Secretary reveals Greater Colombo development plan

2011-04-04T20:43:00.002+05:30

About 70,000 families identified as shanty or slum dwellers in the city of Colombo would be relocated within the next two years in high-rise community housing units that are to be developed for them within the city, Defence Secretary Gotabaya Rajapaksa said.
Mr. Rajapaksa revealed this and several other development plans that are underway in Colombo, while addressing the American Chamber of Commerce last Monday on “Development Plans for the City of Colombo.”

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(Source: Sunday Times)

Sri Lanka to construct new Colombo Port City at a cost of US$ 300 million

2011-04-04T20:40:00.000+05:30

Under a presidential directive, the Sri Lankan government is to reclaim between 300-400 acres of sea land between the Colombo South Port Development project and the Galle Face Green in order to build a Port City at a cost of US$ 300 million.
The proposed offshore city, to be divided into three segments- business, residential and leisure, will be developed into a modern city with high rises, hotels, residential apartments, shopping malls, and other space to cater to the public needs.

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(Source: Colombopage)

Overseas Realty to start Havelock City’s Phase - 3 next year

2011-03-27T05:08:00.000+05:30

Overseas Realty (Ceylon) PLC (ORC) will start Phase – 3 of its Havelock City Project (HCP) early next year to be completed within three years, according to officials. “This will encompass three towers, with an additional 405 residential units,” Pravir Samarasinghe, Group CEO ORC, who took up his appointment mid this month, told the Business Times.
Literally the ‘new kid on the block’ at the World Trade Centre (WTC) which ORC owns, Mr. Samarasinghe said that HCP’s Phase - 2 has been very encouraging and has seen 25% of its apartments snapped up within February when it was launched.

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(Source: Sunday Times)

Two islands leased out

2011-03-24T16:43:00.001+05:30

Two islands near Kalpitiya have been leased out at Rs. 18 million to two foreign companies for investment in tourism for 30 years, Parliament was informed today.

Of them, Vellai Island has been given on lease at Rs. 3.7 million to be developed as a joint investment between Sri Lanka and Maldives and Switzerland, and Inpativu Island at Rs. 14 million to an Indian company named Cube Leisure Property Private Ltd. The joint venture with Maldives and Switzerland is called Sun Resort Investment Lanka Private Ltd.

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(Source: Daily Mirror)

GOVT. PLANNING LAND RECLAMATION FROM GALLE FACE-WELLAWATTE

2011-03-24T16:38:00.000+05:30

A feasibility report is being conducted for land reclamation by way of extending the coastline from Galle Face to Wellawatte by 300-400 acres, Deputy Minister of Ports and HighwaysRohitha Abeygunawardena today revealed in parliament.

In a document submitted to parliament the Deputy Minister revealed that this will be done as a part of restructuring the commercial hub of Sri Lanka. The Government is looking at how to alleviate the inconveniences caused by ill-planned roads and badly constructed building in Colombo.

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(Source: Ada Derana)

Govt. says many offers to manage Hilton Hotel

2011-03-13T23:27:00.002+05:30

The Government has been inundated by offers from top international chains to manage the Hilton Hotel in Colombo following the announcement last Wednesday that the property is now solely Sri Lankan owned. A Finance Ministry source said that the hotel is seen as a good, exclusive property in post-war Sri Lanka where tourism is growing fast.
“Many top chains have expressed interest,” the source said. Economic Development Minister Basil Rajapaksa announced in Parliament that the land had been taken over due to failure by Cornel & Co., which leased the land from the Urban Development Authority (UDA) and sub-let it to Hotel Developers Lanka Ltd (HDL), to pay lease rental.

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(Source: Sunday Times)

Chinese aircraft firm also gets Galle Face land

2011-03-13T23:26:00.000+05:30

Gotabaya says billions from three hotel developers will be used for security forces headquarters

A Chinese aircraft manufacturing company will be the second of three successful bidders for star class hotels to be built on the area around the Galle Face Green to be vacated by the Ministry of Defence and Army Headquarters, Defence Secretary Gotabaya Rajapaksa told the Sunday Times.
This follows the sale of a six-acre property to build a multifunction complex comprising a classy hotel and a shopping mall, adjoining another six-acre property where the Shangri-La hotel chain is putting up a hotel complex.
Mr. Rajapaksa said the money raised from the sale of these properties would go largely to fund the construction of a state-of-the-art headquarters for the three military services, the Army, the Navy and the Air Force and the Ministry of Defence at Mattegoda.

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(Source: Sunday Times)

Mega hotel on Cargills property?

2011-03-06T02:58:00.002+05:30

CT Holding PLC, which controls retail giant Cargills, is raising a total of Rs 2.6 billion through a private placement and a rights issue with part of these funds going into a mega development in the Cargills property in Fort which would include an exclusive, upmarket hotel, market sources said.
Cargills officials including its Deputy Chairman Ranjit Page were not immediately available for comment but the sources said the funds from this capital infusion would be used for a development project at Cargills in Fort that would change the character of the area into a ‘touristic walkabout’.

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(Source: Sunday Times)

LankaPropertyWeb house price index updated

2011-02-21T08:49:00.001+05:30

LankaPropertyWeb.com, Sri Lanka's leading property portal has updated it's housing price index with the latest property prices for the month of January.

The house price index can be viewed here

(Source: LankaPropertyWeb.com)

New land powers for Def. Min.

2011-02-21T03:49:00.000+05:30

Statutory body must approve any filling or development in Western Province

Developing or filling land in the districts of Colombo, Kalutara and Gampaha will henceforth require approval from a statutory body coming under the Ministry of Defence. New regulations to compel landowners to obtain the approval of the Sri Lanka Land Reclamation and Development Corporation (SLRDC) were gazetted last week.
President Mahinda Rajapaksa, in his capacity as Minister of Defence, promulgated them. They have come in the form of a “Correction Paper” to regulations gazetted earlier by Dinesh Gunawardena, Minister of Urban Development and Sacred Areas Development.

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(Source: Sunday Times)

Another big hotel project in Colombo

2011-02-14T00:19:00.000+05:30

The government is to launch another hotel project in Colombo Fort, taking over the former Dutch Hospital (Transworks Building) opposite the one time Central Telegraph Office, a senior official of the Urban Development Authority said.
The adjoining car park and a land bordering Chatham Street and Hospital Street in Fort have also been identified for a tourist entertainment venue as part of the project, the official said.
“The former Dutch Hospital will be turned into a hotel in a manner that the ancient structure remains and the archeological value is preserved,” he said without disclosing details about the investors of the project.

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(Source: Sunday Times)

No big names for Kalpitiya, Govt. may issue fresh bids

2011-01-16T01:54:00.000+05:30

The Sri Lankan government may issue fresh bids for Kalpitiya Integrated Tourism Resort Project (KITRP) in the hope of attracting meaty investors, as they are ‘not too happy with those who have been chosen’ to develop 10 islands in Kalpitiya in the Puttalam District, according to government sources.
“There are about 11 investors who applied to invest around US$ 500 million to put up tourist resorts, golf courses, marinas, etc in this zone which was defined as a tourist zone by the Sri Lanka Tourism Authority, but the government is not happy with the bids which have mainly come from Indian parties,” one source told the Business Times.

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(Source: Sunday Times)

New port city being built at $450 mln cost

2011-01-16T01:44:00.000+05:30

The present capacity of the port is 4.5 million TEUs and this is expected to increase to 4.8 million units in 2011, said Sri Lanka Ports Authority Chairman, Dr. Priyath B. Wickram. Dr Wickrama said, “As a part of the overall expansion a modern port city is to be constructed at an estimated cost of $450 million.” This will also function as a commercial centre, with the project commencing in March this year. Further an ultra modern cargo village will be constructed at Peliyagoda which will be advantages to both the transport and logistics industries.

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(Source: Sunday Times)

World's 5th tallest Colombo's Lotus Tower to begin work next month

2011-01-14T16:51:00.000+05:30

The final Bill Of Quantities (BOQ) of the proposed Colombo TV tower project is now being finalized.

The Telecommunication Regulatory Commission of Sri Lanka (TRCSL) expects to start construction work of the tower next month.

The 350-metre tower in Peliyagoda will be constructed with an investment of US $ 103 million. This Lotus Tower will be the latest in the country with seven levels, TRCSL Director General Anusha Palpita told Daily News Business.

The tower is scheduled to be completed within 30 months and will be managed by a public company owned by the TRCSL.

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(Source: Daily News)

Shangri-La lays down its grand plans for Sri Lanka

2011-01-05T15:48:00.000+05:30

Plans to open a new hotel in Colombo in 2014 and 300-key resort in Hambanthota

Hong Kong-based Shangri-La Asia Limited yesterday officially announced the purchase of six acres of Government land facing the Galle Face Green promenade, a prominent landmark in Colombo, Sri Lanka.
The development will be a multi-use complex with high end retailing, deluxe apartments and a 500-key luxury hotel to open in early 2014 and the purchase marks the entry of the hotel group into Sri Lanka, often referred to as 'The Pearl of the Indian Ocean', a statement by the hotel chain said.
Shangri La is also planning to develop a second property, a 300-key city resort on approximately 100 acres of land in Hambantota, on the southern coast of Sri Lanka to open in 2013.

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(Source: Daily Mirror)

Shangri-La leisure project kicks off in 2011

2010-12-20T03:52:00.000+05:30

Asia’s famous Shangri-La Hotels group has finalized its Colombo leisure project with an investment of $500 million, Finance Ministry sources said. The Memorandum of Understanding has been signed with the Sri Lankan government and construction work will begin early next year at the 6-acre army grounds opposite the Galle Face Green in Colombo.

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(Source: Sunday Times)

D.R. Wijewardena Mw to be Colombo’s leisure hub

2010-12-20T03:51:00.000+05:30

While the Urban Development Authority (UDA) has plans to sell its former head office at D.R. Wijewardena Mawatha Colombo 10, properties along that road are being hunted by prospective investors, following a proposal by the UDA to zone this area for leisure and entertainment projects.

“We’ll be advertising our former UDA head office at D.R. Wijewardena Mawatha which has five acres by next year for development,” Nihal Fernando, Director General UDA told the Business Times.
He added that 2011 will also see many such UDA-owned lands in the market. “Whatever we want to develop will be advertised,” he added. Aitken Spence Hotels PLC is eyeing the state-owned boat builder, Ceynor Foundation complex also in D.R. Wijewardena Mawatha for a 15-floor hotel project, according to company sources.

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(Source: Sunday Times)

Sri Lanka property project resumed by Shing Kwan

2010-12-06T01:32:00.002+05:30

The Singapore-based Shing Kwan group has re-activated its big Havelock City residential and commercial property project in Sri Lanka with plans to build 800 more apartments, its chairman S P Tao said.

"This country is going to get better, and better and better," Tao said at the formal launch of the remaining phases of the 350 million US dollar project in the heart of the capital Colombo.

Construction work has begun on the second phase of the project, being done by the Colombo-listed Overseas Realty (Ceylon), in which Shing Kwan has a majority stake, the balance being held by state-owned Bank of Ceylon.

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(Source: LBO)

Sri Lanka JKH plans new property venture

2010-12-06T01:29:00.000+05:30

Sri Lanka's John Keells Holdings is planning a 6.5 billion rupee condominium project in Colombo's Union Place which will be built by a newly incorporated company in the group, top officials said.
"We are looking at a condominium in Union Place," deputy chairman Ajit Gunewardene said. "It is certainly something we are working on."

The project will be on group property in Union Place where the head office of Singer Sri Lanka are located.

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(Source: LBO)

Fresh bids called for CCC property

2010-12-06T00:41:00.002+05:30

The Government has called fresh bids to close the deal on the controversial sale of the Colombo Commercial Company (CCC) property facing the Beira Lake, with a decision on the highest bidder to be made by the Urban Development Authority (UDA) which comes under the Defence Ministry.

The Finance Ministry was also involved (along with the UDA) in the evaluation process but not anymore. These bids received from several local and foreign investors are now being evaluated, a high ranking government official said. No decision has been taken so far to sell the property to any of these big conglomerates, he said.

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(Source: Sunday Times)

Aitken Spence, JKH, Cargills interested in GOH

2010-12-06T00:40:00.000+05:30

John Keells Holdings, Aitken Spence and Cargills Ceylon are among local and foreign firms that have expressed interest following a public advertisement inviting a management partner for the Bank of Ceylon-owned Grand Oriental Hotel (GOH), according to hotel industry sources.

A source close to GOH told the Business Times that Singapore’s Raffles, four Indian hotel chains, Midddle East investors and European ones have also sent their Expressions of Interests (EOIs) to the Bank of Ceylon (BOC).

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(Source: Sunday Times)

Softlogic Group to buy Hotel Ceysands

2010-12-06T00:39:00.000+05:30

Softlogic Holdings Ltd has been allowed to purchase the disputed Hotel Ceysands at Bentota at a price of Rs.925 million, according to a directive issued by the Supreme Court on Friday.

The 3-member Court bench headed by Justice Shirani Tilakawardane directed the Chartered Accountants committee appointed to devise a repayment plan and to asses and value Golden Key Credit Card Company (GKCC) properties, to accept the offer made by Softlogic, when the GKCC case was taken up for hearing.

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(Source: Sunday Times)

Major land scam

2010-11-24T16:46:00.002+05:30

Four suspects were arrested by the CID for allegedly attempting to sell a four acre land in Millennium City, Athurugiriya by producing a forged deed of Rs 35.2 million, CID said.

The CID arrested the suspects who are residents of Mirigama and Aluthgama early today in Battaramulla by pretending they were serious land buyers. DIG Kulathilaka said that they were involved in a similar business for nearly three years.

He further advised the public to be on alert about their unoccupied land and properties.

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(Source: Daily Mirror)

Overseas Realty Rights issue fully subscribed

2010-11-24T16:36:00.000+05:30

The rights issue of Overseas Realty (Ceylon) PLC has been fully taken up by the shareholders of the company, raising a total of Rs 4.35 billion, the organisation said this week. Overseas Realty, developer and owner of the World Trade Center Colombo and the developer of the Havelock City project, offered 281 million shares in the proportion of one Ordinary Share each for every two Ordinary Shares held in the capital of the company by way of a Rights Issue.

The company said the funds raised through this rights issue was for the compulsory redemption of the Non Convertible Cumulative Redeemable Preference Shares (NCCRPS) that were issued by the company and subscribed to by Shing Kwan Investment (Singapore) Pte Ltd. Shing Kwan Investment is a member of the Shing Kwan Group, the major shareholder of Overseas Realty.

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(Source: Sunday Times)

Shangri -La objects to former Commercial property offer

2010-11-24T16:35:00.000+05:30

Shangri -La, the global hotel company, that has been offered the army headquarters property is reconsidering the plan as the offer price is much higher than the Commercial property. Well –informed government sources said the army headquarters property is being offered at US $72 million for six acres (over Rs.7 billion at US $12 million an acre) whereas the CCC property is being sold at US$85 million for 11 acres (over Rs.8 billion at US$7.7 million an acre).

“The CCC land located in close proximity to Beira Lake, Hunupitiya Gangarama Temple, leading hotels including Jaic Hilton in Colombo and prime surrounding area is much, more, suitable for a hotel project, than the highly congested army head quarters property near the Galle Face residential area,” the source said explaining the Shangrila objection, which came after the Business story last week headlined “Controversy over proposed CCC property deal”.

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Source: Sunday Times

Controversy over proposed CCC property deal

2010-11-14T18:05:00.000+05:30

The massive Colombo Commercial Company (CCC) property development project located at a prime area in Colombo facing Beira Lake at Sir James Peiris Mawatha has run into a major controversy due to a decision to sell it to a blue chip conglomerate at a price of Rs. 8 billion without calling for public tenders.
A government decision to wrap up the deal is mainly influenced by a powerful government official but on the other hand is being vehemently opposed by other relevant authorities, informed sources said.
The property is owned by the Urban Development Authority (UDA).
They said the CCC property has been earmarked to build city hotels, trade complexes and malls. The blue chip, in the running to own this property, has extensive commercial land in Colombo including prime area in the city, and outside.

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(Source: Sunday Times)

Tata in housing sector in Sri Lanka

2010-10-17T17:01:00.000+05:30

Tata Housing, a unit of Tata Sons, is moving into international markets with the launch of projects in Sri Lanka and Maldives in the current quarter, a top executive of the company was quoted as saying in Indian news reports.
The real estate company, known for low-cost housing projects, plans to do a mix of luxury and affordable housing projects in these markets, he said.

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Source: Sunday Times

Most Sri Lankan families can’t buy even a basic house : WB

2010-10-17T16:59:00.000+05:30

While housing developers are doing good business and Sri Lanka’s rich are buying and selling luxury condominiums for profit, most families can’t raise the money for even a basic house, according to the World Bank.
“Newspapers are full of real estate classified ads for both rental and purchase properties. At the same time, more than 80% of the households in Sri Lanka have no access to home financing, and about 7% are lacking homes. One third live in semi-permanent housing and 6% live in line room estates and shanties,” it says in a report on housing finance.

“Information on land prices for 2003 and 2006 obtained from finance companies showed that average land prices in 18 selected areas have increased by about 28%, with a growth range of 12% –71% annually,” says the report.

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Source: Sunday Times

Overseas Realty to moot tax drop

2010-10-17T16:55:00.000+05:30

The Overseas Realty (Ceylon) PLC is making representations to the Ministry of Finance for a process of what it calls ‘fairplay’ in applying Value Added Tax (VAT) to property development projects, officials said.
"This tax is applicable at 12% to 'large' projects that are worth more than US $10 million.

But we say that large projects (by their developers) can be targeted at lower middle income segments as well - it's just that the projects are larger. We're presenting a paper on this to the Finance Ministry before the budget with another property sector developer," W.D. Barnabas, CEO ORL told the Business Times on the sidelines of a media conference to launch the company’s rights issue.

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Source: Sunday Times

Six Senses Ahungalla to open in 2012

2010-10-13T02:59:00.002+05:30

Sri Lankan diversified conglomerate Aitken Spence recently announced that its hotels’ arm had signed a "50:50 joint venture" agreement with international luxury brand Six Senses Resorts & Spas, and local representatives, the Favourite Group, to set up Six Senses Ahungalla which has an estimated opening date of 2012.

Located close to Aitken Spence's existing Heritance Ahungalla property, this US$ 40 million hotel and spa project will encompass 10.5 acres of beachfront land and a 27-acre nearby island. Described as architecturally inspired by the late Geoffrey Bawa and comprising 20 one bedroom villa suites, 14 two bedroom beach front residential villas and 15 island villas, this resort expects to charge as much as US$ 450 per room.

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Source: Sunday Times

Sri Lankan real estate holds up in tense times

2010-10-13T02:57:00.000+05:30

'Resilient" is the word that almost everyone is using to describe Sri Lanka's housing market - and its economy in general.
Despite a long-running armed conflict and the 2004 tsunami, "Sri Lanka is one of the best countries around in which to have real estate," said Lalitha Saleem, senior manager of Ceylinco Housing & Real Estate, which is developing one of the Sri Lankan capital's largest new developments. "The market can go up very fast, showing high returns."
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(Source: NY Times)

Nivasie houses for Sri Lankan housemaids to suit their purse

2010-08-08T05:12:00.002+05:30

A new housing scheme catering to Sri Lankan housemaids who work abroad is being introduced by Nivasie Developers (Pvt.) Ltd. a fully owned subsidiary of International Construction Consortium Ltd. (ICC).

Herman S. Gonsal, Managing Director /CEO of the company said most of these housemaids work hard to look after their families and one of their dreams is to own a house of their own here in Sri Lanka. The main problem they faced is that their savings from working overseas are not sufficient to build a house.
Nivasie Developers will step in to complete even a section of the house for them to suit their financial situation, he said. He noted that they can complete the house part by part after they have settled in a small section with one room and a kitchen. Nivasie will undertake the responsibility of completing the house, he added.

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(Source: Sunday Times)

Major Ceylinco assets worth over Rs.42 billion to be sold to repay depositors

2010-08-05T16:53:00.000+05:30

Major assets of failed Ceylinco companies including the Ceylinco Celestial residencies tower, Kollupitiya ,Trillium Residencies, Celestial Towers .the Pioneer Tower in Fort, and the Ceylinco E.N.T. hospital Narahenpita all valued over Rs. 42.6 billion are to be sold soon to expedite the repayment of disgruntled depositors on a supreme Court order. A US Real Estate company, subsidiary of failed Ceylinco Shriram group will also be liquidated and returned all Ceylinco funds to Sri Lanka . A civil case has been filed at the Columbia Civil Court to liquidate the Ceylinco Real Estate holdings LLC USA which is a subsidiary of Ceylinco Shriram group, A senior official of the Attorney General’s Department said.

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(Source: Sunday Times)

Land acquisition: Lankan families wait for more than 25 yrs for compensation

2010-08-01T22:34:00.000+05:30

Some Sri Lankan families whose land have been acquired for road development have been waiting for more than 25 years for compensation while payments owed to 42,000 affected families is estimated at Rs 8.6 billion, a top government official said on Tuesday.

Highways and Road Development Ministry Secretary Admiral Wasantha Karannagoda, speaking at the launch of the Asian Development Bank (ADB) guide for "Designing and Implementing Redress Mechanisms for Implementors of Transport Projects" in Colombo, said that he had recently brought this to the attention of the Sri Lankan President. He also requested the ADB to consider helping the government rectify this issue so that Sri Lanka could continue its road development plans unencumbered by past debts or "start from zero".

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(Source: Sunday Times)

Police team probes illegal State land acquisitions

2010-05-30T23:42:00.000+05:30

IGP promises tough action against offenders

The police team appointed by Inspector General of Police Mahinda Balasuriya to probe fraudulent land deals has commenced investigations on a few cases of alleged illegal acquisition of State and private land.
Highly placed police sources have confirmed to the Sunday Times that priority has been given to the illegal acquisition of and encroachment on State land. However the police have so far received only a few complaints of private land related frauds.
The sleuths from the Criminal Investigations Department (CID) and the Police Crimes Division which comes under the Deputy Inspector General of Crime have begun to peruse documents which they have received relating to State land acquisitions.

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(Source: Sunday Times)

BOI gearing to unblock state land for investment

2010-05-19T19:28:00.000+05:30

The Board of Investment (BOI), under its new chairman Jayampathi Bandaranayake, plans to cut the red-tape investors face when trying to procure state land for their investments.

He said that now many ministries are clubbed together in a meaningful manner and that BOI together with relevant agencies is looking at how to harmonise their functions. “We are focussed on the same vision and we will operationalise it, because the issues with land will retard what is essentially possible,” he added. “The biggest issue (that investors face when trying to invest) is trying to secure land. We’re trying to see how to unblock state land,” he told the Business Times on the sidelines of his first press conference on Wednesday.

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Source: Sunday Times

Sri Lanka Overseas Realty starts expansion drive

2010-05-19T17:39:00.000+05:30

Sri Lanka's Overseas Realty Ceylon, a unit of Singapore's Shing Kwan group, is pushing ahead with Colombo's largest property project amid renewed buying interest in apartments after the end of a 30-year war. Overseas Realty owns Colombo's World Trade Centre building which houses the Colombo Stock Exchange and is jointly developing Havelock City, an 18-acre block of land with state-run Bank of Ceylon.

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Source: LBO

May Day 2012 rally will overlook 500 acres of new land beyond Galle Face Green, says President

2010-05-04T06:01:00.002+05:30

President Mahinda Rajapaksa said he will be redrawing the map of Sri Lanka with the massive development projects the government plans to launch in the coming years. These include reclaiming 500 acres of land from the sea off the Colombo coast, along the Galle Face Green.

“Two years from now the May Day celebrations will be held at the Galle Face Green, overlooking the reclaimed land,” the President told a United People’s Front Alliance rally at the Colombo Town Hall last evening.

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Source: Sunday Times

Sri Lanka moves to free prime property in capital

2010-04-16T17:56:00.000+05:30

Prime property in Sri Lanka's capital Colombo could be made available to private developers when the government goes ahead with a planned shift of state institutions, including defence, to the suburbs, officials said.

"We're waiting for the green light," said an official of the Urban Development Authority, which is in charge of urban planning.
The government has decided all administrative functions must go to Sri Jayawardenepura, a new city west of Colombo, he said.
"We will not keep a single government entity in Colombo."
The new city was planned as the administrative capital, leaving Colombo, where most companies have their offices, as the commercial capital.

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Source: LBO

Boom times for Sri Lanka

2010-04-14T20:31:00.000+05:30

Sri Lanka's hotel owners are racing to refurbish and add thousands more rooms as foreign holidaymakers pour into the country after the end of nearly four decades of ethnic bloodshed.

Leading hotel groups plan to spend millions of dollars on new decor and facilities for the influx of tourists drawn to the plentiful sunshine, beaches and tropical wildlife on the Indian Ocean island nation.

The ambitious expansion comes amid a post-war revival that has pushed up hotel room rates and given the hospitality industry something to cheer for the first time in years.

Read More>>

(Source: iafrica.com)

Lumiére Residencies receives CMA certification

2010-03-29T01:26:00.000+05:30

Lumiére Residencies receives CMA certification

Lumiére Residencies, a Sri Lanka Board of Investment approved project developed by DGS Holdings (Pvt) Ltd and designed by associate company Design Group Five International (Pvt) Ltd, was recently awarded the Certificate of Conformity from the Colombo Municipal Council and the Condominium Management Authority (CMA) Certification.
The Certificate of Conformity (CoC) is a statement of quality that declares that the building meets all stringent statutory requirements as per approved plans for architecture, structure, electrical systems, water supply & drainage system, and solid waste disposal and fire fighting systems.

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Source: Sunday Times

Top Real Estate Broker Admits Dodging Taxes

2010-03-23T04:06:00.000+05:30

The Sunday Leader has uncovered shocking new evidence of how expatriate-owned real estate brokers help foreigners buy valuable property on the island without paying the mandatory 100 percent transfer tax that was enacted in 2005. Over the past decade, foreigners have bought up massive swaths of Sri Lankan beachfront property, displacing local inhabitants and inflating real estate prices to unprecedented levels.

Most foreigners buy the property as an investment, hoping to re-sell it later for a hefty profit. The most valuable and hotly-traded property is located around Galle, from Bentota to Matara, but numerous expat-owned real estate brokers also offer beachfront property around Trincomalee, Arugam Bay, Tangalle and Puttalam. With numerous real estate companies taking advantage of a tax loophole to quickly sell off land to outside investors, the government appears content to let foreigners buy up the island from under its very nose.

Investment in Emerging Markets Booming

2009-10-25T16:48:00.000+05:30

Investment in Emerging Markets Booming

More and more experts are tipping investment in emerging markets are forecast to represent up to 75% of global growth in the near future, proof that now is the time to make investment in property, stocks and equities in these countries.
Emerging markets, particularly the BRIC nations (Brazil, Russia, India and China), are now leaving the recession behind and are expected to lead the rest of the world out of the economic downturn. Speaking in Seoul, Allan Conway, head of emerging market equities at Schroder Investment Management, said that as emerging markets drive world growth, they will represent “70% to 75% of global growth for the foreseeable future.”
According to Bloomberg, the top ten global highest performing benchmark indexes this year are all emerging markets. Indexes in Argentina and Sri Lanka have more than doubled while Brazil's stock exchange has increased in value by 55% so far during 2009.
Conway went on to say that because of increasing domestic demand - Brazil saw a 2.1% quarterly increase in Q2 - and growing trade between developing nations (Brazil and China are ever-bigger trade partners), “emerging market growth looks much better than developed economies.”
According to Conway, the BRIC nations are in an “early stage” of development, which is set to take off. “The importance of BRICs will just get bigger and bigger,” he said, emphasising that this is not a short-term phenomenon but one that is here to stay.
Domestic demand in the BRIC nations is huge and rising. Between them, the four countries have a population of 2.9 billion and purchasing power in the quartet is rising fast, creating huge internal markets. Better credit conditions - for example, Brazil has historically low interest rates and record consumer credit - also adds to consumer demand.

Source: Investment International

Sri Lanka east coast to get new hotels

2009-10-25T16:45:00.002+05:30

Oct 15, 2009 (LBO) - The Sri Lanka Tourism Development Authority has approved the construction of new hotels on a prime beach property on the island's east coast following the end of the war, a senior official said.

S Kalaiselvam, director general, Sri Lanka Tourism Development Authority, said the country aims to add about 20,000 hotel rooms in the next seven years to cater to the anticipated boom in tourism.

Read More: http://www.lankabusinessonline.com/fullstory.php?nid=1717299991

Sri Lankan finance company makes big loss

2009-10-25T16:44:00.000+05:30

Sri Lankan finance company makes big loss

Oct 21, 2009 (LBO) –Sri Lanka's The Finance Company (TFC), a former unit of the troubled Ceylinco Group, said it made a 2.5 billion rupee loss in 2008, owing to a slump in property prices and a run on deposits.

TFC said in a statement the company had been adversely affected by the high profile collapses of unregistered finance companies which triggered a run on deposits at other firms.

TFC was an influential player in the property market with large holdings of land in the city and suburbs. However with the burst of the property bubble, land values have shrunk.

Seminar on new system replacing deed registration of property

2009-10-25T16:42:00.000+05:30

Seminar on new system replacing deed registration of property

A seminar on “Registration of title to property” organised by Alumni Association of the International Development Law Organization (IDLO) Sri Lanka with the collaboration of Ministry of Lands & Land Development, Ministry of Justice & Law Reforms and Association of Corporate Lawyers of Sri Lanka will be held on October 30 at the Excel World from 9.30 am to 4.00 pm.The Registration of Title Act of 1998 (RTA) replaces deeds registration with registration of title to lands in areas where its application has been introduced by Gazette. Under this new system, ownership of land is based on a Certificate of Title. The man objective of title registration is to grant government guaranteed land title to private land owners. A system of stable property rights without labor intensive searches enhances the credibility and marketability of lands. This is a great incentive to entrepreneurs and the private sector, which is the backbone of the economy of our country. It is also the main purpose for which the Act is implemented.
The process of title registration, which has now picked up momentum under the Bim Saviya Program of the Ministry of Lands and Land Development, includes the issuing of Cadastral maps for blocks of land and the issuing of Title Certificates replacing deeds at the cost and expense of the government. This new system will soon apply to lands in Colombo and several other Districts.

Read more: http://www.dailymirror.lk/DM_BLOG/Sections/frmNewsDetailView.aspx?ARTID=65627

As the gunfire ends, Sri Lanka's property boom begins

2009-10-25T16:34:00.003+05:30

As the gunfire ends, Sri Lanka's property boom begins

By Bandula Sirimanna

Just like many industries, the condominium sector is also adversely affected by the global economic recession and the instability caused in some finance companies in the country but the industry expects high demand in the market with the dawn of peace.
In this backdrop the Chamber of Construction Industry Sri Lanka (CCI) has initiated action to revitalise the construction industry by extending assistance to the property development sector and the built environment which are paramount to the construction industry.
The Chamber has decided to make available a dedicated pavilion for badly affected property developers at the International Construction Trade Fair Excon 2009 from October 30-November 1, Dakshitha Thalgodapitiya, Chief Executive of the CCI told the Sunday Times FT.
Speaking on the sidelines of the press conference convened to announce details of the exhibition in Colombo he said that in order to overcome the non availability of easy access to obtaining bonds and guarantees for property developers , the chamber is at present in the process of formulating a conceptual framework of bonds and guarantee scheme where the chamber envisages to play the role of a “Surety Agent” as available in many other developed and developing countries, he said.
There are many property developers who are unable to recover their investments as apartments/housing units remain unsold. Further, some developers who have made sizeable investments are unable to secure additional funding required to complete ongoing projects thus bringing them to a standstill, due to reasons such as lack of investors, stagnation of demand, reluctance of the banking community to lend to this sector, and the credit freeze encountered as a result of the global recession, he said.
He added that the CCI has conducted a survey to identify the affected property developers and help them to sell their apartment units by showcasing their projects at Excon 2009. Some projects which were in the initial construction stage would also be promoted among potential investors, he said.

Source: Sunday Times - http://www.sundaytimes.lk/091025/FinancialTimes/ft33.html

Sri Lanka Ceylon Theatres hit by property market slump

2009-10-25T08:59:00.000+05:30

Sri Lanka Ceylon Theatres hit by property market slump

Oct 06, 2009 (LBO) - Sri Lanka's Ceylon Theatres group has completed a big high-rise project with 80 percent of luxury apartments sold but was struggling to sell the rest as higher costs caused losses in the property unit.

However, chairman Anthony Page said he was optimistic the end of the island's war and economic recovery would enable the group to make better use of its real estate assets in which investments were continuing.Group net profits for the March 31, 2009 financial year fell 21 percent to 326 million rupees from a year ago, according to the annual report filed with the stock exchange.
Sales rose 21.11 percent to 38.6 billion rupees over the same period with the group's retail and fast moving consumer goods business enjoying what Page called above average growth.
The group's real estate and property business suffered a "substantial set back" in the year, Page told shareholders in his annual report.
Group subsidiary CT Properties completed the ‘Empire’ apartment project, a twin-towered, high-rise built on prime property in the heart of the capital Colombo where a cinema by the same name had stood.

More - http://www.lankabusinessonline.com/fullstory.php?nid=1850811902
Source - LBO

Sri Lanka ‘experiencing international property boom’

2009-10-25T03:25:00.002+05:30

Sri Lanka ‘experiencing international property boom'

Sri Lanka is experiencing a major property boom now that its civil war is over, it has been reported.

In a feature on the island, the Daily Mail noted that investors have been more confident about buying on the island since last year saw the last Tamil Tiger stronghold fall in the north.

The paper noted the example of Charlie Wrey and his wife Tweenie, who have been managing a hotel in the southern city of Galle and now plan to purchase a tea plantation inland.

Mr Wray said: "There is a bullish atmosphere now the war is over, with property deals being done the whole time."

The paper noted that offshore property buyers often favour Galle as a major centre of tourism for westerners with its 17th century Dutch fort, which overlooks the city’s international cricket ground.

Investors looking to the Galle area may also be attracted by its rail link to the country’s financial capital Colombo, as well as its proximity to the popular resorts of Hikkaduwa and Unawatuna.

Written by Tom Britten. Source: Halifax http://www.halifax-international-expats.com/sri-lanka-experiencing-international-property-boom-19401307/

As the gunfire ends, Sri Lanka's property boom begins

2009-10-14T14:47:00.001+05:30

With its 25-year civil war over, Sri Lanka is enjoying rising tourism - and the return of investors to the home market.

For somewhere the size of Ireland , Sri Lanka packs an alluring punch with its palm-tree-fringed beaches, colonial tea plantations, unique wildlife and ancient cities and temples. But the savage war that has raged for more than 25 years between the majority Sinhalese and the Tamil minority has had a devastating effect on the island's economy and tourism.

The insurgency was formally declared over last May when the last stronghold of the Tamil Tigers was taken, and the effect was immediate. By August, tourism was 35 per cent up on 2008, and enterprising locals are predicting a sharp revival of the island's economic fortunes.

Chinese assistance for a new housing project in Sri Lanka

2009-07-16T17:37:00.001+05:30

July 15, Colombo: Sri Lankan and Chinese Governments today signed an agreement to construct urban housing project of 130,000 units in selected areas of Colombo and its suburbs.

The agreement for this project worth of 1.2 billion rupees was signed this morning at the Ministry of Constructing and Engineering Services.

Construction and Engineering Services Minister, Dr. Rajitha Senaratna and Liu Wei, the Deputy Chairman of the Chinese International Economic and Technical Cooperative Agency signed the agreement on behalf of the two governments.

The houses are to be constructed at Dematagoda, Panchikawaththa, Ragama and Keppitipola Mawatha in Colombo.

Minister Senarathna told the media that the housing project would be completed on two years.

Source: Colombopage.com

Sri Lankan real estate company hit by falling prices

2009-06-01T15:54:00.000+05:30

COLOMBO, Jun 1, 2009 (Asia In Focus via COMTEX) -- EQY | Quote | Chart | News | PowerRating -- The real estate arm of Sri Lanka's CARSONS CUMBERBATCH group said it was writing down the values of properties by 450.3 million rupees (US$3.9 million) as the prices slumped in the wake of tight monetary policy. "This year has been a challenging year where we saw a significant market correction on the property prices as a result of tighter credit conditions and a change in investor and customer attitude on real estate," EQUITY ONE LTD, a Carsons property firm said in a statement.

* "The property values have reflected changes in interest rates and risk.

* "Unrest in the financial markets and uncertainty in the wider economy have added to the crisis of the property market."

For full details on Equity One Inc (EQY) click here. Equity One Inc (EQY) has Short Term PowerRatings of 3. Details on Equity One Inc (EQY) Short Term PowerRatings is available at This Link.

tradingmarkets.com

Demand for property set to increase

2009-05-24T04:36:00.000+05:30

With the conclusion of Sri Lanka's 30 year civil war the property market looks like a clear winner with locals and expats expected to look for real estate investment. However with a global recession slowly rearing it's head in Sri Lanka and the supply of condominiums outweighing the demand, property prices aren't expected to rise dramatically in the near future.