Overseas buyers dominate apartment sales in Colombo, Sri Lanka

As prices of prime apartments rise in Colombo, locals have been priced out of the sector, which is dominated by foreign investors, non-residents and wealthy locals, says top agent, JLL

Most prime apartment projects in the Sri Lankan city of Colombo are purchased by overseas buyers, non-residents and wealthy locals, says a leading agent.

The Sri Lanka property market has seen rising property prices since 2009, thanks to improved confidence in the investment market and Colombo, the largest city and the commercial capital of Sri Lanka, is leading the way, says JLL India.

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(Source: opp-connect.com)

Land-transfer ban to be eased

Non-citizen children of Sri Lankans or non-citizen next of kin can inherit property

New laws prohibiting the transfer of land to foreigners will allow non-citizen children or non-citizen next of kin of Sri Lankans to inherit property through intestacy or gift, a Cabinet paper exclusively obtained by the Sunday Times states. In 2013, the Finance Ministry issued instructions barring all transfers of land to foreigners and throwing a cloud of uncertainty over inheritance rights. While the law allowed individuals to transfer property by gift or testamentary disposition to their heirs, the Ministry directive forbade it.

The new law envisages a reduced land lease tax of 7.5 per cent for certain categories of companies.

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(Source: Sunday Times)

Draft laws to ban foreign ownership of land

New legislation is being drafted to strictly enforce rules pertaining to the 2013 ban on foreigners owning land, which is now being enforced through administrative circulars.

Top government sources said that proposed laws are to be promulgated to tighten loopholes in the administrative process of enforcement .

In the 2013 budget (presented in November 2012), the President proclaimed that foreign nationals and companies would be completely prohibited from owning freehold land in Sri Lanka. Until that time, foreigners were able to purchase land upon the payment of a 100 per cent transfer tax, which many were circumventing through ingenious methods of purchasing the land through a majority Sri Lankan nominee owned companies and later purchasing 100 per cent of the shares, the sources said.

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(Source: Sunday Times)

New look Colombo 2: UDA to acquire private land

A redevelopment and mixed development project on eight acres of land in Kompannaveediya will enable the Urban Development Authority to acquire private lands in underdeveloped or underserved areas of Colombo City, a gazette notification said. The project labelled as a pioneer concept for urban renewal is to be undertaken by a private company which will get tax concessions running into millions of rupees for project related work.

Details of the project have been gazetted by Investment Promotion Minister Lakshman Yapa Abeywardena The project estimated to cost around US$ 429.5 million including a foreign direct investment of US$ 130 million is to be undertaken by a company going by the name of M/s One-Colombo Project. But details of the company, who its partners are and its Board of Directors have not been mentioned in the gazette notification.

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(Source: Sunday Times)

New laws to ensure safety of buildings

A Construction Development Authority will soon register all contractors and adopt a string of measures to regulate the fast growing building industry.

This is one of the highlights of a new Construction Industry Development Bill the Government will introduce in Parliament “to register, formalise and standardise” the construction industry.

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(Source: Sunday Times)

Krrish group faces stay or depart directive

Krrish group faces a stay or depart directive issued by the government that allows them time till September – a final deadline – to pay the Colombo Fort Transwork square balance land lease payment, Investment Promotion Minister Lakshman Yapa Abeywardena told journalists in Colombo on Thursday.

The company had been given time till July 15, another of the many extensions it has received, to complete the land lease deal of around Rs. 5 billion of which a sum of Rs.4.4 billion has already been paid by them to the Urban Development Authority (UDA).In what is seen as the final deadline, Minister Abeywardena said, “If the company fails to complete payment before September, the final deadline, and ensure that the project would be completed in the given time frame, the project would be cancelled.” 

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(Source: Sunday Times)

Krrish strikes deal with Ritz-Carlton

The controversial Krrish Transworks Colombo, the local unit of the Indian based property developer has struck a deal with the United States based global luxury hotel chain, the Ritz-Carlton Hotel Company to hand-over the management of its proposed skyscraper in the heart of Colombo, according to Sri Lanka’s Investment promotion Minister.

The joint agreement between Krrish and Ritz-Carlton is a commonly used arrangement in the hospitality industry where the developer hands-over the management of the facility to a specialist in the industry.

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(Source: Daily Mirror)