SUNCITY ADDS MODERN APARTMENT COMPLEX TO BATTARAMULLA SKYLINE

A pioneer in construction and real-estate, Suncity Property Developers (Pvt) Ltd unveiled plans on the latest addition to their extensive portfolio of apartment complexes, and introduced a new building at Battaramulla.

Located on Bodhiya Road, a mere 300 meters from the Battaramulla main road, the building will house 20 apartments over four floors, with modern facilities and conveniences including a 24-hour security service, a gymnasium, swimming pool etc. Each apartment will also be equipped with the trademark amenities including air conditioning, hot water and porcelain tiling. The apartment complex which is scheduled for completion by July 2013 is currently open for buyers who are interested in affordability, convenience and a great lifestyle.

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(Source: Adaderana.lk)

Krrish has paid only 10 % of lease for prime Fort property, admits Govt.

The Government on Friday conceded that M/s Krrish Group India has only made an initial deposit of Rs. 499.5 million or 10 per cent of the total lease premium for the Transworks House property in Colombo Fort.

Nimal Siripala de Silva, Leader of the House in response to a question raised by Opposition Leader Ranil Wickremesinghe said as a follow up action after making the initial deposit, the Urban Development Authority (UDA) has taken steps to vest the Heritage building site to seek the final approval to sign the lease agreement.

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(Source: Sunday Times)

BUDGET 2013: SELLING LAND TO FOREIGNERS TO BE COMPLETELY PROHIBITED

Selling land to foreigners will be completely prohibited from 2013 but will be granted on a lease system, the President proposed a short while ago in his budget speech.

Furthermore, it was proposed that land leased to foreigners will be taxed by 100%.

2012 3rd Quarter House Price Index - Prices fall across the board

LankaPropertyWeb.com's 2012 3rd quarter housing price index shows that all house, apartment, commercial and land prices in the country have suffered and are down compared to the last quarter. A weak global and local economy could be the factor behind the latest fall in prices. 

There is some glimmer of hope though as Apartment sale prices in Colombo have slightly increased and house + land prices in the northern province shows further increases. The land prices of Southern, Central and Western (apart from Colombo) have also gone up, however Colombo land prices have dropped. 

We have also noticed that most advertiser reduce their asking price after few days of posting their ads.

The full stats of the latest house price index can be found at http://www.lankapropertyweb.com/house_prices.php

Tourists seek cheaper accommodation

Tourists, this winter season are looking for low-priced accommodation, a development that has affected hotels and resorts with the season not attracting travellers to today’s “expensive” hotels. More visitors are arriving and the target of one million arrivals would be achieved but they find star-class hotels too expensive since the war ended with prices increasing since 2009.

Reasons for the sudden shift in tourist preferences were also blamed on the recession in Europe and increased regional competition. Jayantissa Kehelpannala, Sector Head Sri Lankan Resorts of the John Keells Hotels Group and newly appointed Hotels Association President, speaking to the Business Times admitted there was a drop in bookings but remained cautiously optimistic that nothing could be predicted today since last-minute reservations were observed lately in the winter season. As at now “there is a drop but I emphasise the booking patterns have changed drastically,” he said.

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(Source: Sunday Times)

Construction industry hits a brick wall

Construction industry representatives say that the recent cement price increase would have a devastating effect on their projects.�“The current situation is a blow to the entire construction industry, as the recent price increase is the second for this year”, Sri Lanka institute of Architects Registration Board Chairman Architect Jayantha Perera told the Sunday Times.
He said not only contractors, but laborers in the industry, such as bricklayers and helpers, as well as subcontractors who are raw material providers, cement product providers and others involved with the construction industry, will be badly affected by the price increase.

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(Source: Sunday Times)

Hyatt International to manage Hyatt Regency Colombo at Celestial Towers

Hyatt International South West Asia Ltd, affiliated to Hyatt Hotels Corporation entered into a management agreement with Sinolanka Hotels and Spa on Friday to manage the Hyatt Regency Colombo hotel at the state-acquired Celestial Residencies, better known as Celestial Towers, at Kollupitiya.

The site is one of the iconic properties of collapsed Ceylinco group of companies and was acquired under the Revival of Under performing Enterprises and Underutilized Assets Act as an under performing asset.

The project, expected to be completed by December 2013, will be developed as a five-star luxury hotel complex consisting of approximately 565 rooms with around 94,000 square meters in built up area and 43 stories in height.

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(Source: Sunday Times)

Indian company gets huge project in Fort

One of the City’s major landmarks is to be given to an Indian company for development on a 99-year lease for more than Rs 4.9 billion.

The land encompasses the Transworks House, a colonial building that once housed the former Public Works Department (PWD). The building is documented as a place of archaeological value.

A recommendation by President Mahinda Rajapaksa for this deal has been endorsed by the cabinet. It will see the local subsidiary of Krrish Group with its registered offices in New Delhi undertaking a “mixed development project” with the construction of a high rise “Transworks Tower.”

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(Source: Sunday Times)

SRI LANKA INTRODUCES NEW LAND POLICY TO PROMOTE TOURISM

Sri Lanka has introduced new land policy to attract foreign investment for tourism, a minister said on Wednesday.

Lakshman Yapa Abeywardena, deputy minister for Economic Development, said the Cabinet has given nod to lease out state lands for hotel projects for foreign investors under 99 years lease agreement.

“The lands will be leased out on the prices valued by Government Chief Valuer,” Abeygwardena said.

Sri Lanka’s robust post-war tourism sector continued to grow, posting a 7.8 percent rise in July from a year earlier, according to government data.

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(Source: Ada Derana)

Sri Lanka’s Shaw Wallace seeks 99-year lease on prime Colombo land

Sri Lanka’s Shaw Wallace and Hedges PLC plans to secure a 99-year lease on its Colombo property from the Urban Development Authority, a report said. An extraordinary general meeting of shareholders has been fixed for September 03, to approve the sale of 264.65 perches of prime Colpetty land for 1.85 billion rupees in order to continue the stalled development of "Mayfair City" – two 30-storey towers comprising 307 luxury residential apartments.

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(Source: LBO)

Indo-China battle looms over prime property in Colombo

India has lodged a strong protest with Sri Lanka over the allocation of a prime Colombo property to a Chinese company though it was earmarked for India.The protests were delivered both in New Delhi and Colombo, an External Affairs Ministry source said yesterday. He was speaking on grounds of anonymity since EAM officials are not allowed to talk to the media.

The 287-perch property, once occupied by Shaw Wallace and Hedges, with frontage both to the Galle Road and the Duplication Road, has been given to the Chinese aircraft manufacturing firm CATIC or China National Aero Technology Import and Export Corporation. It is for what has been described as a “flagship project”. It is not immediately clear how much the Chinese company paid for the deal.

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(Source: Sunday Times)

Latest Sri Lanka House Prices - Recession bites Commercial properties?

The LankaPropertyWeb.com property price index for Q2 2012 is out with prices showing mixed results once again.

Key summary of the statistics are:

• House prices and land prices are up while apartment and commercial building sale prices are down
• Overall land prices continue to rise for the 2nd consecutive quarter while land in Colombo and North steam ahead
• House prices in Colombo and North fall while there is an overall increase in the house prices
• Commercial property sales and rentals take a battering as both have spiraled down

For the Full list of the latest LankaPropertyWeb Property Index visit www.LankaPropertyWeb.com

Lanka’s tallest condominium ready by 2017

Indocean Developers Private Ltd, a company of South City Projects (Kolkata) Ltd. (SCPKL), which has acquired a two-acre parcel of land opposite the Beira Lake to construct the 68-storey upmarket condominium development, is expected to be complete construction by the year 2017. Safdie Architects has been commissioned to design Colombo’s tallest condominium. Indocean Developers Private Ltd. has been floated by SCPKL specifically for the Sri Lanka project.
 
More >>

(Source: The Nation)

Wayamba officials sign up Amaya Leisure for upmarket, wayside restaurant

The Wayamba Development Authority (WDA) of the Wayamba Provincial Council has signed an agreement with hotel and resort group, Amaya Leisure PLC to operate a top-notch restaurant three kilometres away from Kurunegala on the Kurunegala – Dambulla Road just before the Forest Reserve.The company will operated the Badagamuwa Centre which would be a boon to local and foreign travellers, the regional agency said in a media release.


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(Source: Sunday Times)

Colombo suburb land price trends positive : RIU study

Suburbs of Sri Lanka’s business capital Colombo are experiencing positive trends in terms of land prices, according to the second in a series of research reports published by the local office of KPMG in association with Research Intelligence Unit (RIU).The report, entitled “Changing cityscape: Real estate market brief; Issue II – 2012″, revealed that the 14-year average land price in Mount Lavinia was Rs. 629,074 per perch. And that the average land price per perch was Rs. 1.392 million over the last 12 months. However, the report also noted that there was significant variation between different areas of the municipality, while also indicating that land prices in the area had recorded a high of Rs. 3 million per perch.


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(Source: Sunday Times)

Sweeping tax concessions for massive project in Fort

A five-acre extent of land has been allocated to operate a mixed utility complex including a luxury hotel in Colombo Fort under the Strategic Development Project initiated by the Government.The project will be operated by the WelcomHotels Lanka (Pvt.) Ltd. under an agreement entered into by the Board of Investment in May this year.

The total investment on the project is US$ 140 million (about Rs 18 .6 billion). It has been identified as a project of national interest that will bring economic and social benefit and change the landscape of the country.The project company has initially deposited into the account of the Deputy Secretary to the Treasury (Urban Development Fund) an upfront Lease Premium of US$ 73. 5 million (around Rs. 9.8 billion).

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(Source: Sunday Times)

Marriott Hotel to open in Weligama

East West Properties PLC, owned by businessman Nahil Wijesuriya, has signed a hotel management agreement with Marriott International hotel chain to manage the company’s Rs 3 billion hotel in Weligama, which will eventually go public, officials said. Mr. Wijesuriya, Chairman East West Properties PLC told the Business Times that Weligama Hotel Properties Ltd., a fully owned subsidiary of East West Properties PLC, began construction of its first resort hotel, Marriot Weligama Resort and Spa in Weligama Bay in March this year and that it will open under the brand category of Marriott Hotels and Resorts in March 2014.


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(Source: Sunday Times)

Hyatt Regency hotel coming to Celestial Tower

n a new and still unexplained development, Sino Lanka Hotels & Spa Pvt Ltd has taken over the project and plan to install the Hyatt Regency hotel there, a company official at the site said. The Finance Ministry in its 2011 annual report said the partly constructed building was being transformed into multifaceted hotel complex, through a consortium of private and public entities, while compensation is paid to 3rd party stake holders. There was no hint of a transfer of ownership.

Construction work of the Celestial tower building which was halted in 2009 due to funding shortage has resumed, the company official said. He told the Business Times that Hyatt Regency Hotels Ltd will manage the 450-room super luxury hotel at Celestial tower after the completion of the building by contractors, Maga Engineering (Pvt) Ltd.

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(Source: Sunday Times)

Liberty Plaza under major refurbishment, new apartment complex underway

The proposed Liberty Towers and Retail Mall would see a new mall with a twin tower service apartment development. The retail podium will link directly with the adjoining Liberty Plaza Expansion project, forming an integrated retail experience between the two malls, while the service apartment towers would sit on top of the podium.

At the two towers, the serviced apartments would comprise 240 apartments on 21 apartment floors.
Some 50% of the unit mix consists of two-bedroom apartments, with the rest being one-bedroom, three-bedroom and penthouse units.

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(Source: Sunday Times)

War-displaced landowners can claim property

Absentee land and property owners in the once war-ravaged north and east will be able to reclaim ownership under a new law, Justice Minister Rauff Hakeem said yesterday.

There will be an independent mechanism to settle disputes connected with land and property, he told the Sunday Times. In terms of existing laws, he said, a person holding uninterrupted “adverse” possession for ten years is entitled to ownership.

The 30-year-long separatist war led to persons occupying land or holding immovable property like houses after the owners were displaced or disadvantaged, he said. Mr. Hakeem was in Kuwait yesterday.

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(Source: Sunday Times)

Star hotel near BIA, China frontrunner

he Government has decided to build a luxury hotel near the Bandaranaike International Airport.
The frontrunner identified to undertake the construction project on a build-operate-and transfer basis is the China Harbour Corporation.
The second is Quant International Ltd., a British firm and Finco (Pvt.) Ltd., a Sri Lankan company. They have been listed in that order by the Airport and Aviation Services Limited (AASL).

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(Source: Sunday Times)

Sri Lanka looks to restore war zone property

Sri Lanka is to bring in special property laws to protect the rights of hundreds of thousands of people displaced by the island’s Tamil separatist war, a justice ministry official said yesterday.

The measure could see absentee owners, or their heirs, looking to reverse decades of possession by other people in both the conflict-wracked north and east of the country and elsewhere.

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(Source: FMT)

Hemas, buoyed by tourism outlook, plans to develop 43-acre hotel property Tangalle

Hemas Holdings, buoyed by the growth and outlook in Sri Lanka’s tourism sector, is reviving plans to develop its 43-acre property in Tangalle in the coming year, according to Husein Esufally, its Group CEO.
“In the past the group has been actively investing in hospitals, hotels and power, with a long term focus. Over the past five years, group investments have exceeded Rs. 5 billion.

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(Source: Sunday Times)

Laugfs planning unique 5-star hotel at Kalutara

The Laugfs Group’s leisure unit is planning a unique 5-star hotel, considered to be a one-of-a-kind in Sri Lanka, at its 15-acre beachfront land at Waskaduwa, Kalutara.

This would be the second in the chain of hotels under Laugfs Leisure Ltd which will be operational in the season 2013/14. The first hotel in the chain is being constructed in Chilaw and its progress is on target and also expected to be commercially operational by the latter part of the financial year 2012/13, the group said in discussing its annual accounts for the year ending March 31, 2012.

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(Source: Sunday Times)

Sri Lanka’s tallest tower in the making

Sri Lanka will have a new skyline when construction on the country’s tallest tower begins in August. The 64 floor condominium will be constructed by Indocean Developers (Pvt) Ltd.

For the first time in Sri Lanka, it would have a roof top, 150-metre infinity swimming pool, observation deck, restaurants and a sky park.

Located opposite the Beira Lake, on a 10 acre land in the old Commercial Company premises, it would have 400-apartments and the total investment would be around Rs. eight billion. A venture of Indian property group South City Projects (Kolkata) Pvt. Ltd will get underway in August and would be completed in three years. In their first overseas venture, SCPKL has commissioned world renowned architect Moshe Safdie and his team at Safdie Architects to design an iconic residential tower.

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(Source: Daily News)

Premier Pacific building converted to Sheraton Hotel

According to the Sunday Times on 13th May (http://www.sundaytimes.lk/120513/BusinessTimes/bt02.html), the partially built apartment complex in Colombo 3 which was to be known as 'Premier Pacific' has been bought by the Sheraton Hotel group and is in the process of converting it to a 360 roomed luxury hotel.

The Premier Pacific already had 12 floors of the 21 storied building completed before downturn and low interest halted the work in 2010, which began in 2004.

India’s ITC now finalises deal, Sheraton moves to Kollupitiya

The Board of Investment (BOI) signed an agreement with Kolkata-based ITC for a mixed development project opposite the Galle Face Green, while contrary to reports of the five star Sheraton hotel being established at this site, its building is now seen rising in the heart of Kollupitiya -- through a different party.

The international luxury hotel chain Sheraton under the Starwood Group was introduced through Lanka Hotels and Residencies (LHR) on May 4 when both parties signed the agreement in the presence of Treasury Secretary Dr. P.B. Jayasundera with its location set right next to the “Carnival” ice cream parlour at Kollupitiya and opposite the popular Indo-Ceylon Café.

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(Sunday Times)

Latest Sri Lanka House Price Index shows mixed patters

The latest house & land Price Index published by LankaPropertyWeb.com shows a mixed pattern with commercial and house prices dropping slights and Apartments enjoying a boom in the price with land values. 

However the Colombo house prices have bucked the trend and continue to increase further. 

Another noticable observation from the stats is that the house and land values in the Northern Province has fallen.  Could this be the end of the Northern province property price boom or just a seasonal blip? We'll have to wait till the next quarter results are out to know for sure. 

The full stats can be found at: LankaPropertyWeb Sri Lanka House Price Index

Lanka Property Watch Staff

Could banks survive with land fraud?

Land fraud and mortgage fraud over the past years have grown significantly in Sri Lanka threatening the stability of local banks. Thus it’s time to take immediate action as the money lent by banks on negative equity or forged deeds belong to the depositors. More>> (Source: Sunday Times)

Latest property stats available now

Average land and house prices at the end of 2011 now available on LankaPropertyWeb.com. 


Average house prices climb to Rs. 17.88 million and land prices at 630,000 per perch. 


For full stats, visit http://www.lankapropertyweb.com/house_prices.php

Shangri La breaks ground for 661room hotel in Colombo

Shangri-La Asia Limited will invest 408 US$ million on this hotel project.  The star class hotel will have 661 rooms, 30 storied and the construction work is to be completed in 2015.
 

Shangri-La is also planning to construct it's second hotel in Hambantota to open in 2013, on approximately 115 acres of land with a 315 rooms with a  investment of 120 US$ million.

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(Source: News.lk)

Real estate changes hands via unreal deeds

Dubious land deals are on the increase with more and more cases piling up in courts, with some of the victims seeking the assistance of the Criminal Investigation Department (CID) to probe them. The frauds have sparked off a multitude of serious repercussions including that of banks unable to recover their loans granted for land purchases, incomplete constructions and victims losing millions of rupees.

Within three months of setting up, the CID’s special unit to probe land frauds has received more than 1,000 complaints with more coming in on a regular basis. “We have arrested four main gangs involved in land frauds, but more complaints are coming in “, a senior officer involved in the investigations told the Sunday Times.

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(Source: Sunday Times)

US Hilton to be asked to run Colombo Hilton

Colombo’s Hilton Hotel will be managed by its parent organisation in the United States and re-furbished to accommodate VVIPs when Commonwealth leaders meet for their summit in 2013, if a proposal now before the Cabinet is accepted.

It was barely four months ago that Hotel Developers Limited, the owning company, was taken over as an “underutilised” or “underperforming” venture in terms of a controversial law. Thereafter, a Competent Authority, who was appointed to oversee the working of the hotel, had recommended sweeping changes to a Cabinet Sub Committee headed by Minister Anura Priyadarshana Yapa.

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(Source: Sunday Times)

Expats, key to condominiums

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

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

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

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

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. More >> (Source: Sunday Times)

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

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."

More>>

(Source: Sunday Times)