Prime Minister to propose scrapping ‘expropriation’ laws

Prime Minister Ranil Wickremesinghe is to propose scrapping controversial expropriation laws and some changes to land ownership laws during a special statement in Parliament on Thursday on the Government’s mid-term strategy.

The source added that when the government moves to acquire private property, bad signals go out. “The reasons may be justified, but the very intention of using state power to deprive legitimate owners of their property encourages and activates the worst elements. And this will not attract FDI.” Similarly, he said the Land (Restrictions on Alienation) Act restricting land ownership by foreigners, foreign companies and companies registered in Sri Lanka also deter FDI.

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(Source: Sunday Times)

Indian real estate company Sandal Lands enters Sri Lanka with $10 mln investment

One of India’s leading real estate companies, Sandal Lands has entered Sri Lanka with an investment of US$ 10 million. The company is in discussions with the Urban Development Authority of Sri Lanka, said Sanjay Kathuria, Director of Sandal Lands at a media briefing in Colombo last week.

Mr. Kathuria said, “The initial phase of the investment will be US$ 10 million and later on we will go up to US$ 25 million.” Recently the company partnered with the government of Maldives and Sri Lanka is the second international market for Sandal Lands, he added.

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(Source: Sunday Times)

Kingsbury signs Management Agreement with Platinum Realty

The Kingsbury PLC, the luxury five star city hotel in Colombo, has signed a Management Agreement with Platinum Realty Investments (Private) Ltd to manage its Platinum 1 apartment complex.

Platinum 1 is a 20 storey apartment complex located at No.1, Bagatalle Road, Colombo 3, comprising of 66 apartments plus 4 penthouses. The complex would have other residential amenities on the 4th floor- with a swimming pool, spa, gym, and restaurants.The property would be branded as “Platinum 1 by Kingsbury”, on the theme of “promise of luxury”, catering to the growing demand for luxury serviced apartments in the city of Colombo, the hotel group said.

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(Source: Sunday Times)

Krrish to break ground for mixed development project soon

Indian real estate company Krrish Group will break ground soon for its long-delayed US$650 million mixed development project at Transworks House in Fort as the company has received the approval of the Urban Development Authority (UDA) last week to go ahead, local Krrish officials revealed.

The local company Krrish Transworks Colombo (Pvt) Ltd, a subsidiary of Indian real estate company Krrish Group, will launch construction of the proposed first and second phases of the project within the next two months, they said.
The company has paid Rs.4.4 billion out of the full lease payment of around Rs.5 billion to take over the 4.3 acre land on 99 year lease.

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(Source: Sunday Times)

Sri Lanka to sign new deal with China Port City

Sri Lanka will sign an amended agreement with a Chinese company that is reclaiming the sea near Colombo, involving the Urban Development Authority with a committee tasked to make changes to the deal.

Sri Lanka has already granted a six-month extension to a temporary agreement signed with Sri Lanka Ports Authority and the CHEC Port City Colombo (Pvt) Ltd.

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(Source: Sri Lanka Mirror)

Sri Lanka to see oversupply in the luxury property market

Supply is set to overtake demand at the high end of Sri Lanka’s residential property market, with a series of large-scale projects under way in and around Colombo.

The supply of luxury apartments in the commercial capital could reach 6000 units by 2018-19, according to a recent report by the Research Intelligence Unit (RIU), up from 783 in 2009 and 2657 this year.

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(Source: OBG)

Seven bills to raise revenue through mega taxes

Finance Minister Ravi Karunanayaka has reintroduced the Finance Act (Amendment) Bill which seeks to impose the Mansion Tax and Migration Tax and the Super Gains Tax on a company or individual whose profit before tax exceeds Rs. 2,000 million.

This and six other bills aimed at raising state revenue were presented to Parliament by the Finance Minister this week amid opposition protests.

The Mansion tax will be imposed on every owner of a mansion constructed on or after April 1, 2000, at the rate of Rs 1 million per year, in addition to the rates and taxes charged and levied by any local authority, and shall be paid in four equal installments.

A Mansion has been described as “any building constructed on or after April 1, 2000, for residential purposes, of which the floor area is not less than 10,000 square feet as per the building plan approved by the local authority of the local authority area wherein such building is situated, or the value of such building, as at the first day of April of any relevant year, is not less than Rs 150 million, as determined by the Government Chief Valuer, or by an officer authorized by him, after making any adjustment as may be prescribed, and in the case of a condominium property , a condominium unit of such property shall be deemed to be a building for the purposes of part.

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(Source: Sunday Times)