Business

Attracting foreign real estate investments amidst the economic turbulence in Sri Lanka

Published

4 years ago

2022/05/20

By Rohan Parikh

From the COVID-19 pandemic to its current economic turbulence, Sri Lanka has tackled many challenges thrown at them with resilience. Today however, Sri Lanka is under tremendous unrest and pressure and faces a challenging macroeconomic situation today. There are a bunch of contradicting factors that need to be mitigated – and this will require some difficult decisions. One of the things that can change the fortunes of Sri Lanka is foreign investments.

The role of foreign real estate investment

By its nature, the construction industry opens many opportunities for a foreign investor to consider a country as the ideal spot for their investment. Real estate is an infrastructure asset that adds to the wealth and asset base of the nation. It enables the creation of a stable middle class and secure working class.

Nearly 3/4th of construction sites in Sri Lanka are currently halted due to varying reasons: ever-rising cost of raw materials, unavailability of essential goods due to import restrictions, ongoing forex crisis and more. This has dealt a massive blow to the labour market as construction sites employ large numbers of labourers. It has also impacted many local suppliers of the hundreds of items needed for construction from doors, windows, steel, locks, tiles, glass, wood, and more. Thus it is critical to get the real estate industry moving again. To achieve this, it will be critical to make Sri Lanka an attractive destination for foreign investment.

Tools of change that the leaders of the nation have in their belt

Financial incentives:

Now, more than ever, it is critical that foreign investment in real estate be tax exempt. This exemption was mistakenly removed several years ago, at a time when taxes on domestic industries were disastrously slashed. The lack of tax benefits to foreign investors led to a slowdown in future projects funded by foreign exchange and impacted forex inflows.

Simultaneously, the tax cut on local companies led to a draining of the state budget. It left the country extremely vulnerable to a shock like COVID. Today, we hope that strong financial incentives are put in place to attract foreign investors back to Lanka. Without these, markets like India, Pakistan, Thailand, and Dubai will always seem like better avenues for investment.

Policy clarity:

It is important for foreign investors to perceive the country as having a stable regulatory environment. The period from 2016 to 2018 saw a lot of sudden changes in policy and processes that resulted in a great amount of uncertainty and trepidation amongst foreign investors. This needs to be avoided during any change of administration as it does long term damage to the country’s reputation amongst investors. Just as an example, the rule on VAT and NBT was changed 3 times in the space of a year during that period.

Protection of investors: A foreign investor must be made to feel welcome and safe. Despite the efforts of an overwhelming majority of forward thinking leaders and bureaucrats, a small minority can do a lot of damage.

In my own case, we were hounded and harassed by some politicians without cause, and were slandered in an extremely unfair and untrue attack by local media. We were attacked for being a foreign company and we lost a lot of business due to this slander. This frightened our staff and made many of our investors decide not to invest in Sri Lanka again. In the same breath, I am also happy to report that in the end, the legal system in Sri Lanka came to our rescue and the courts passed an order protecting us. We survived, shaken but still resolute in our commitment to Sri Lanka. Unfortunately, not all foreign investors have that kind of resolve, especially when there are other markets that offer more welcoming access. The need here is to empower the Board of Investment with real powers to tackle such roadblocks and to protect foreign investors.

I have been investing in Sri Lanka for over 15 years now. We were the first company to invest in Sri Lanka once the war ended. I have seen the resolve and strength of the nation and I am confident that this crisis will pass. I hope that we are able to learn from the crisis and come back better and stronger.

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Business

Indo-Sri Lanka Chambers forge alliance to drive infrastructure and real estate investment

Published

8 hours ago

2026/09/14

Thilina Walpola

The exchange of the MoU between the two organisations

By Sanath Nanayakkare

In a major boost to bilateral economic ties, the Chamber of Construction Industry of Sri Lanka (CCISL) and the Indo–Sri Lanka Chamber of Commerce & Industry (ISCCI) have signed a strategic Memorandum of Understanding (MoU) to deepen cooperation in real estate, infrastructure, and urban development.

The agreement establishes a formal framework for both institutions to drive collaborative initiatives, including business delegations, high-level conferences, workshops, B2B matchmaking sessions, and technical site visits. Designed to bridge businesses, government institutions, and project stakeholders across the Palk Strait, the partnership aims to unlock new avenues for cross-border joint ventures and technology transfers.

A focal point of this newly minted partnership is the facilitation of an upcoming trade delegation from the National Real Estate Development Council (NAREDCO) of India. Comprising major Indian players in the real estate and infrastructure sectors, the visiting delegation will engage in targeted business meetings, workshops, and inspection tours of prominent construction projects in Sri Lanka.

Under the terms of the MoU, CCISL will serve as the principal host coordinator in Sri Lanka. In close consultation with ISCCI, the apex construction body will curate itineraries, identify viable projects for engagement, and facilitate high-level dialogues with key government agencies, regulatory bodies, and industry leaders.

With both nations prioritizing sustainable urban growth, modern construction technologies, and infrastructure expansion, industry leaders view the partnership as a timely catalyst for economic rejuvenation. The collaboration is anticipated to accelerate market access, knowledge exchange, and foreign direct investment into Sri Lanka’s burgeoning property and development sectors.

To ensure the success of the upcoming NAREDCO delegation, CCISL has issued an urgent appeal to statutory authorities and relevant project owners to come forward with viable investment proposals. Stakeholders holding projects seeking foreign investment or technical partnerships are invited to submit comprehensive details to the Secretary General and CEO of CCISL via email at secyces@gmail.com.

Both chambers emphasize that translating this foundational agreement into tangible partnerships and robust capital flows will significantly strengthen bilateral connectivity between the construction and real estate sectors of India and Sri Lanka.

Business

Hettich celebrates a decade in Sri Lanka with partner meet in Colombo

Published

8 hours ago

2026/09/14

Thilina Walpola

Over the past decade, Hettich has strengthened its presence in Sri Lanka through its focus on German engineering, innovation, quality and functionality

Hettich, the globally renowned German manufacturer of furniture fittings and architectural hardware known for its state-of-the-art manufacturing plants and magical interior solutions across the world celebrated a significant milestone in Sri Lanka, marking 10 years of presence in the country with its inaugural Partner Meet in Colombo.

The landmark event brought together Hettich’s key partners, stakeholders and industry leaders to celebrate a decade of growth, collaboration and shared success, while reaffirming the company’s long-term commitment to the Sri Lankan market.

Over the past decade, Hettich has strengthened its presence in Sri Lanka through its focus on German engineering, innovation, quality and functionality, contributing to the creation of contemporary and intelligently designed living and working spaces across the country.

The gala evening was graced by a distinguished delegation of senior leaders, including Dr. Andreas Hettich, Chairman, Hettich Group Advisory Board; S. K. Poddar, Chairman, Hettich India & Adventz Group; Mr. Akshay Poddar, Director, Hettich India; Andre Eckholt, Managing Director, Hettich India, SAARC, Middle East & Africa; Rahul Thakkar, Director – Sales, Hettich India & SAARC; and Dinusha Bhaskaran, Managing Director, Vallibel One PLC.

Business

GS Evo Motors launches all-new JMEV EWIND

Published

8 hours ago

2026/09/14

Thilina Walpola

Priyantha Perera, Chief Executive Officer of GS Evo Motors (left), and Sunil Wettasinghe, Chairman of GS Evo Motors, introducing the latest JMEV Ewind Electric SUV to the local market

GS Evo Motors Limited, the authorized distributor of JMEV electric vehicles in Sri Lanka, has officially launched the JMEV EWIND, a next-generation compact electric SUV. The vehicle is designed to offer strong performance, intelligent technology, premium comfort, and high safety standards, marking another milestone in Sri Lanka’s growing electric mobility sector.

The EWIND features a sleek, aerodynamic exterior with penetrating LED daytime running lights, trapezoidal chain-inspired LED tail lamps, 19-inch alloy wheels, and a bold silhouette. Inside, it offers a spacious cabin with a panoramic moonroof and retractable curtain, an ultra-thin suspended instrument panel, a D-shaped multifunction steering wheel, multi-colour ambient lighting, premium finishes, and electrically adjustable front seats.

The SUV is available in single-motor front-wheel drive configurations, producing up to 108 kW and 210 Nm, with 0–100 km/h acceleration in 8.9 seconds.