Sri Lanka’s Condominium Developers welcome Budget 2017

Updated: 00:00 GMT, Jan 1, 1970 | Published: 12:02 GMT, Nov 22, 2016 |

Sri Lanka’s Condominium Developers Association which represents the condominium developers in the country has hailed the budget 2017 presented by the Finance Minister.

The association which is an affiliated trade body of the Ceylon Chamber of Commerce said in a statement that the budget contained a number of progressive proposals to stimulate demand from a new market segment to help absorb the increasing supply pipeline.

The association states that currently there are over 8,000 luxury apartments being constructed in the city of Colombo.

“It is important to attract foreigners/Sri Lankan diaspora to purchase apartments to absorb this supply,” the association said.

“An oversupply situation can be catastrophic to the property sector in particular and the economy in general.”

In the Budget speech the Finance Minister identified significant potential for Real Estate Investment Trusts (REIT), and agreed to facilitate the SEC in introducing amendments to the Unit Trust code.

The land Alienation Law was also relaxed by removing the restrictions on foreign controlled listed entities and now quoted Public Companies with foreign ownership exceeding 50 percent could purchase property and land in Sri Lanka.