Business Traveller (Middle East)
ALL EYES ON SRI LANKA
Barry Brown, Managing Director, Lanka Island Properties, explains why this fast- developing island with a booming tourism industry is an investment hotspot
Why now is the right time to invest in the island’s real estate
Why is now a good time to invest in Sri Lanka’s real estate market?
Sri Lanka is at an important juncture in its history. Following almost 30 years of civil war, there is a new government in power with a fresh manifesto and a desire to establish the island as major global hub. Attracting foreign direct investment in key infrastructural developments and boosting the tourism industry are priorities, which is establishing a sustainable real estate investment sector. With renewed interest in Sri Lanka and real estate prices on the rise, now is the time to invest.
What are the key growth areas?
The capital, Colombo, has ambitions for commercial and residential development that emulate the likes of Singapore and Dubai and it is witnessing strong interest from
India and China. Local capital is also being poured into high-rise commercial, retail and mixed-use developments. The south coast of the island, including Galle, offers some of the best investment opportunities outside of Colombo due to its tourism appeal. Tangalle is piquing investor interest too due to the imminent opening of an expressway and railway that will drastically cut travel times from Colombo. Large towns like Kandy are also proving popular with investors.
What are the stand-out infrastructure developments?
The new US$15 billion Port City capitalises on Colombo’s strategic location on one of the world’s major shipping routes. When completed it will double the size of the city and positively impact real estate prices. Plans are also afoot to transform the Western region, where 29% of the population works and resides, into one of the 10 most livable cities in Asia. Major enhancements to transportation are also underway, which include the
With Sri Lanka just 4.5 hours from the Middle East, this idyllic island should be on the radar of anyone looking for a secure value appreciating asset, which can also be commercialised
new Colombo Light Railway (CLR) and airport expansion.
Who should invest?
Anyone looking for a second home or commercial opportunity, as well as investors wishing to diversify their portfolio. Just 4.5 hours from the Gulf, this idyllic island should be on the radar of anyone looking for a secure value appreciating asset, which can also be commercialised.
How easy is it to invest?
Most sectors in Sri Lanka are now open to foreign direct investment and while property laws may sound convoluted, there is a process, which if followed, will allow you ease of access to securing your investment property, dream home or holiday home.
How has the market changed since the April 2019 bombings?
This devastating incident had an immediate negative impact on tourism, but it started to bounce back in mid- October and there has been a steady inflow of tourists in recent months. In addition, the presidential elections took place in December without incident and the transition to the new government was wellorchestrated. With these positive signs in the market, the future bodes well for the tourism and real estate investment markets.