Overseas Realty to moot tax drop

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

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

'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

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

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

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

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. More>> (Source: Sunday Times)