Sri Lanka to charge 10-pct capital gains tax on property: Budget 2017

Sri Lanka will charge a 10 percent capital gains tax on immovable property, Finance Minister Ravi Karunanayake said, in a budget for 2017.

Details were unavailable, but earlier reports suggested that property bought and sold before the expiry of 10 years would be subjected to the tax.

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(Source: Economy Next)

Lanka withdraws ban on foreigners buying property

Sri Lanka has announced it would lift a ban on foreigners owning property as the cash-strapped country sought to attract foreign capital to rebuild its war-ravaged economy.
Finance Minister Ravi Karunanayake on Thursday told parliament of the potential to attract much-needed foreign investment in the construction sector, which is experiencing a boom following the end of the island’s ethnic war in 2009.

“To further incentivise such investment, we will remove freehold right restrictions from the ground floor,” the minister said, referring to a 2014 ban on foreigners purchasing real estate.

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(Source: Gulf Times)

Real Estate Sector Emerges As Preferred Investment Avenue For Sri Lankans

A recent survey conducted by LankaPropertyWeb.com and the Real-estate Intelligence Unit (RIU) indicates that the majority of Sri Lankans prefer to invest in Real Estate, as opposed to the stock market or bank savings. In one of the most detailed ground surveys carried out about the Sri Lankan Real Estate Sector, 44.1% of respondents said that they prefer to invest in Real Estate as opposed to the 33.9% who preferred to invest in Fixed Deposits, while 22% indicated their allegiance towards investing in Stocks and Trusts.

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(Source: LankaPropertyWeb.com)

Existing Land Tax for foreigners to be removed

The Amendment Bill for the removal of the land tax imposed on foreigners or companies that hold more than 50% foreign shares, when leasing lands to them, has been gazetted on the instructions of the Finance Minister.

The notification was published under section 11 in the September 02 government gazette notification and the Amendment Act has been named as the Bill Amendment Restrictions Act, No. 38 of 2014.

The Amendment bill has proposed the abolition of the land tax from January 01, 2016.

According to the land tax that was effective from January 01, 2013, if land is being to a foreigner or a company where foreign shares are over 50%, of the tax payable, 15% is charged as a land tax.

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Source: Sri Lanka Mirror

Sri Lanka central bank watching rising property prices

Sri Lanka's central bank is keeping a watch on rising land prices in Colombo, Deputy Governor Nandalal Weerasinghe said, although there were no plans to place credit restrictions.

Prices of real estate in Colombo have been rising over the past two years, and prices of apartments have also jumped.

"We are watching property prices in Colombo," Weerasinghe told EconomyNext. 

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(Source: Economy Next)

Lee Hedges in Rs2.8bn Sri Lanka serviced apartment project

Lee Hedges Plc, a publicly traded company in Sri Lanka, said it will build a Rs2.8 billion multi-storied serviced apartment project in the capital Colombo.

The Board of Directors had formally approved the decision on August 26, the firm said in a stock exchange filing.

"Although there is an increase in the supply of residential apartments, demand for property in a prime location such as ours is likely to be steady," Chairman S R Vamadevan told shareholders in March 2016.

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(Source: Economy Next)

300 families in Bamba flats to be relocated in 60 storey building

The National Housing Development Authority (NHDA) would relocate the three hundred families living in the Bambalapitiya flats in a sixty storey building, after the flats were demolished for the proposed mixed development project, NHDA Deputy General Manager Sarath Kumara said. 

Mr. Kumara said the Bambalapitiya flats would be demolished in order to claim the 10.16-acre land for another housing and semi-commercial project by a Singapore-based Indian company. 

However, discussions were still ongoing with the people in the flats, and a date to knock down the building was yet to be decided, he said. 

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(Source: Daily Mirror)

Sri Lanka to ease restrictions on foreigners acquiring land for investment

Sri Lanka is taking measures to ease the restrictions imposed on foreigners acquiring land in the island nation for investment projects, the Ministry of Finance said in a statement on Wednesday.

According to the statement, a new draft bill is being prepared with the aim of providing provisions to provide ownership of land without being affected by the Land Restriction and Alienation Act of Sri Lanka.

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(Source: Xinhua)

Colombo Port (Financial) City; Govt. swings into action

The Cabinet of Ministers formally approved the ambitious Colombo Port City Project, perceived as Sri Lanka’s model of the future for business, leisure and offshore banking.

This venture with the People’s Republic of China was initiated by the previous Mahinda Rajapaksa administration. It became the object of bitter criticism by the United National Party (UNP) and the Sri Lanka Freedom Party (SLFP) – pro Sirisena faction – both during the presidential and parliamentary elections last year. Speakers on almost every platform charged that it raised environmental issues and compromised Sri Lanka’s sovereignty. Some even alleged that there was corruption over this unsolicited proposal.

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(Source: Sri Lanka Mirror)

China, Sri Lanka to redefine Colombo Port City project

Sri Lankan Prime Minister Ranil Wickremasinghe pointed out that the Port City would become part of turning the Western Province into a megapolis of 8 million people.

China and Sri Lanka have decided to redefine the controversial Colombo Port City project by making it an international financial outpost in the Indian Ocean, as part of the 20-year framework plan.

An upbeat Sri Lankan Prime Minister Ranil Wickremasinghe said during a media conference on Saturday that from a real estate project, a decision has been taken to develop the Port City into a financial hub in the Indian Ocean. “Sri Lanka has been planning to establish a financial and business hub in the Indian Ocean and we selected the port city to be the location (for this). So from a landfill and real estate (project), it has become a financial hub.”

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(Source: The Hindu)

Sri Lanka’s Port City to apply its own economic, commercial laws: PM

The proposed Financial City better known as the Port City will function as a special jurisdiction area with its own economic and commercial laws to facilitate operations of global multinational corporations, Prime Minister said.

Delivering the keynote address at the third South Asian Diaspora Convention, Prime Minister Ranil Wickremesinghe said the proposed city is ideal to fill the vacuum for a financial city along the trading route between the cities of Singapore and Dubai.

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(Source: LBO)

Krrish Needs green light from AG, UDA - BoI Chief

The highly-debated and long-delayed Krrish project – which recently recommenced initial construction work,  is yet to be given green light by the government as it had not completed its payment obligations due, The Sunday Leader learns.

However once cleared by the Urban Development Authority (UDA) and the Attorney General’s Department, the project has no impediment from the country’s investment promotion agency – the Board of Investment (BoI) of Sri Lanka, BoI Chairman Upul Jayasuriya told The Sunday Leader.

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(Source: Sri Lanka Mirror)

Development of smart cities: Ranawake to sign two MOUs with Singapore

Megalopolis and Western Development Minister Champika Ranawake will sign an MOU with the International Enterprise Singapore, which is under the Ministry of Trade and Industries of Singapore to share their experiences under the Colombo Megalopolis plan.

The Minister has obtained Cabinet approval to exchange experiences of Singapore for the development of smart cities in Sri Lanka under the Western Megalopolis plan.

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(Source: Daily News)

Sri Lanka’s Port City developer withdraws compensation claims

Sri Lanka’s port city developer CHEC Port City Colombo, who is handling the project for the Chinese investor, China Communications Construction, has agreed to withdraw all compensation claims for losses incurred due to the suspension of the project.

However, the cabinet has approved allocation of 2 hectares to them, without reducing the land extent of 62 hectares owned by Sri Lanka as a gesture to reciprocate their goodwill in completely waiving off all compensation claims.

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(Source: LBO)

40 colonial buildings in Fort to be redeveloped, PM says

Sri Lanka’s tourism industry began tourism ahead of many other countries but its tourism promotion has been lagging behind, according Prime Minister Ranil Wickremesinghe, when he made the keynote speech at the 50th anniversary celebrations of Sri Lanka Tourism at the BMICH in Colombo last week.

 “We are looking not merely at volume but I am going to give priority to value. In the next 20 years there will be nearly 3 billion people in the region. We need the Asians, Chinese, Europeans, Australians and the growing middle and upper middle class people to visit the country.

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(Source: Sunday Times)

Grand Hyatt Colombo to open by 2017 winter season

The much-awaited Grand Hyatt Colombo, which has gone through many a false start in recent years owing to the change in governments and questions over its local owning company, is now set to be operational by December 2017.  A statement to the media by owning company Sino Lanka Hotels and Spa said the Grand Hyatt Colombo features elegant architecture, spectacular lobby and public spaces, and multiple dining experiences, in addition to a wide range of accommodation facilities.  The US$240 million property consists of 1.1 million sq. ft built up area spread across 49 levels. It will have 397 rooms, 61 suites and 100 serviced apartments (ranging from 1 to 3 bed rooms).

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(Source: Sunday Times)

Land Ministry to digitise land bank

Land being the costliest asset in realty has often been at the epicentre of land fights, property crimes and frauds.  Sri Lanka’s Land Ministry now is mulling to digitise its land bank in a bid to curb these issues, a top minister said.  ”There’s a proposal to digitise all lands,” John Amaratunga, Minister of Lands (in addition to his other portfolios – Tourism and Christian Religious Affairs) told the Business Times.  He said that he had a discussion with some parties recently on this and their proposal was interesting. The main reasons cited for this digitisation effort are to detect and prevent fraud and to improve data analytics while streamlining processes in the ministry, he added.

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(Source: Sunday Times)

Krrish Tower project: FCID probe in India

A multibillion rupee project to construct the Krrish Towers, a high rise office cum apartment complex opposite the Colombo Hilton, has become the subject of a detailed inquiry by the Financial Crimes Investigation Division (FCID).

Hambantota District parliamentarian Namal Rajapaksa, described as a prime mover of this project, has been questioned in this regard by FCID detectives.

This week, FCID chief senior DIG Ravi Waidyalankara flew to India to record statements from those who were reportedly the Indian collaborators in the controversial project.

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(Source: Sunday Times)

Siemens cements ties with Sri Lanka on smart city solutions

Siemens today said it has strengthened its partnership with Sri Lanka by signing a pact with the Ministry of Megapolis and Western Development to offer expertise from its globally-proven smart city solutions.

The major objective of the Ministry of Megapolis and Western Development is to bring systematic changes and development processes into the urban community in Sri Lanka, which will ensure inhabitants of urban areas become part of socio-economic development while maintaining high quality of life, Siemens said in a BSE filing.

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(Source: Sri Lanka Mirror)

Bill to make prior approval of NBRO compulsory- Yapa

A Bill would be soon passed in parliament making it compulsory to obtain prior approval from the National Building Research Organisation (NBRO) before commencing any construction work, Disaster Management Minister Anura Priyadharshana Yapa said today. “We are compelled to change laws pertaining to construction as the country is frequently hit by natural catastrophes,” he said. 

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(Source: Daily Mirror)

Western Province megalopolis to be completed in 2030

The megalopolis project in the Western Province is planned to be completed by 2030,Megalopolis and Western Development Minister Champika Ranawaka said.

Speaking at a seminar on the Western Province Megalopolis project conducted by the Chamber of Construction Industry recently, he said the policies regarding the Megalopolis project will be launched this week.

The main topic of the discussion was regarding the question of how soon the country will be able to see the project as a reality. The timeline given for the project claims 2030 as the year that it would see the completion of the megalopolis.

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(Source: Daily News)

China and Sri Lanka decide to make Port City into a financial hub as part of 20 year plan

China and Sri Lanka have decided to redefine the controversial Colombo Port City project by making it an international financial outpost in the Indian Ocean, as part of the 20-year framework plan.

An upbeat Sri Lankan Prime Minister Ranil Wickremasinghe said during a media conference on Saturday that from a real estate project, a decision has been taken to develop the Port City into a financial hub in the Indian Ocean. “Sri Lanka has been planning to establish a financial and business hub in the Indian Ocean and we selected the port city to be the location (for this). So from a landfill and real estate (project), it has become a financial hub.”

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(Source: The Hindu)

Lanka, China agreed to speed up port city project

After stalling the Colombo Port City project for a year, Sri Lanka and China had agreed to "speed up" the USD 1.5 billion Chinese-funded venture besides endorsing the ambitious Maritime Silk Road, the PTI reported today. Prime Minister Ranil Wickremesinghe - who received a red carpet welcome at the Great Hall of People - held talks with his Chinese counterpart Li Keqiang after which the two sides signed seven agreements.

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(Source: Daily Mirror)

China’s ‘Port City’ in Sri Lanka to go ahead, land on lease, not freehold: Malik

Sri Lanka has sorted out differences with China on major projects with the biggest, a 1.4 billion US dollar ‘Port City’ real estate reclamation, about to be given approval, a minister said.

“We discussed all outstanding issues, all outstanding matters have been resolved,” declared Malik Samarawickrama, Minister of Strategic Development and International Trade, referring to his recent visit to China.

“Now it’s all systems go as far as China is concerned.”

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(Source: Economy Next)

Asset Homes to enter the real estate segment in Sri Lanka

Kerala-based realty major Asset Homes is all set to enter the real estate segment in Sri Lanka. It is in discussion with Sri Lankan government to develop residential townships in Colombo, in collaboration with the government. 

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(Source: Economic Times)

JKH to delay Cinnamon Life project

Sri Lanka’s premier blue chip John Keells Holdings PLC (JKH) said the completion of the Cinnamon Life project, previously Waterfront, would be delayed till 2019. 

Previously the project was slated to be completed in 2017. John Keells Chairman Susathan Ratnayake said the US $ 850 million project had seen some “unforeseen delays” and would be completed only in 2019. 

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(Source: Sunday Times)

New buildings in Kotte should confirm to that Era: CM

The construction of new buildings, which do not clearly depict the identity of the country or the village should not be encouraged, because constructing them according to foreign plans will not portray our values and can sometimes become health hazards, Western Province Chief Minister Isura Devapriya said. He said all new constructions undertaken by the Western Provincial Council should be in accordance with the Kotte architectural designs. 

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(Source: Daily Mirror)

Krrish to start Phase 1 of the long-delayed mixed development project

Indian real estate Company Krrish Group has forwarded the plan for the first phase construction work of its long-delayed US$650 million mixed development project at 4.3 acre British era heritage Trans works building site in Fort, a top official of the Board of Investment (BOI) said. The BOI is in the process of studying the proposed plan under the Colombo Krrish square mixed development project including the investment for this purpose, newly-appointed BOI Director General Duminda Ariyasinghe told the Business Times.

The project has been downsized from its earlier status to two towers under the present circumstances, official sources revealed.
The construction of the first phase is expected to begin shortly, a UDA official said.  He said that the under the first stage the company will reconstruct the Transworks Building in Colombo to international standard to set up an upmarket shopping area. According to the proposed new plan this will be an international style shopping mall in Sri Lanka, he disclosed.

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(Source: Sunday Times)

S. Korea’s construction giant Kunyoung enters Lanka

Leading Korean construction and real estate company Kunyoung Engineering and Construction entered Sri Lanka launching Kunyoung Ceylon (Pvt) Ltd.

Kunyoung Ceylon, which comes under the umbrella of one of South Korea’s spearheads in construction and engineering having contributed significantly to the rapid development of South Korea and aims to do the same for Sri Lanka’s ambitious development plans.

It also unveiled Amorium, Kunyoung’s eco-friendly premium apartments with assurances of unparalleled quality, state of the art digital system, space aesthetics and environmental-friendly solutions.

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(Source: Daily News)

‘Port city as economic, financial zone’

The Colombo port city will be transformed into a special economic and financial zone subjected to special rules similar to ones being in force in Hong Kong and Dubai, says prime minister Ranil Wickremesinghe.

The formulation of the rules is presently underway, he has told Deutsche Welle radio of Germany in an interview at Davos, Switzerland, where he is attending the World Economic Forum.

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(Source: Sri Lanka Mirror)

Will go ahead with Port City project: Ranil

The government has decided to go ahead with several Chinese funded infrastructural projects, including the Port City Project, Prime Minister Ranil Wickremesinghe told foreign journalists in Davos today.

 “We are going ahead with Chinese funded projects, including the Port City and the next phase of the Hambantota Port. China is an economic power in Asia and is ready to work on some development projects in Sri Lanka,” he said. 

He said Sri Lanka would like China to invest in other sectors, including real estate, and also play a role in developing Sri Lanka as a logistics hub.

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(Source: Daily Mirror)

Krrish finally seals Transworks House land deal in Colombo

Indian real estate company Krrish Group has finally sealed the controversial Transworks House land deal, that drew allegations of huge pay-offs to politicians and officials, signing a lease agreement with the Urban Development Authority (UDA) in October.The new agreement, not known to the public until officials revealed it to the Business Times (BT) on Thursday, involves a block of land slightly smaller in size than the earlier proposed deal. Officials at the Board of Investment (BOI), which has been involved in the negotiations, said they were unaware of the new development but were checking on the query by the BT.

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(Source: Sunday Times)

Sri Lanka to allow Chinese port city project after delay

Sri Lanka is to go ahead with a $1.4 billion Chinese-backed real estate project after some changes to its terms, a minister said on Tuesday, signalling readiness to accept more Chinese investment in the face of a balance-of-payment crisis.

President Maithripala Sirisena's new government suspended the project, which includes apartments, shopping malls, a water sports area, a golf course, hotels and marinas next to Colombo's main port, in March last year citing various irregularities including a lack of proper permits and approvals.

"The port city will be started. We will down-size the proposed land. We have to sign the deal again for the better future of the country," Sujeewa Senasinghe, junior international trade minister, told reporters.

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(Source: Reuters)