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Apartment selling prices rise 45% alongside construction costs

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ECONOMYNEXT –Overall selling prices of apartments in Sri Lanka increased by 45.17 percent when compared to June 2021, according LankaPropertyWeb’s housing price index.Devaluation of the Sri Lankan rupee against the US dollar which has resulted in shortages of raw materials for construction has in turn led to skyrocketing costs of construction and rising interest for housing loans, a report said. This has prevented the construction of new houses leading to an increase in the purchase prices of houses and apartments.

The overall asking prices of houses in Sri Lanka had increased by 21.85 percent and prices of apartments for sale in Colombo had increased by 32.9 percent when compared to June 2021.The Construction Industry Development Authority showed that the average price of a 50Kg cement bag sold by public and private dealers has increased by 187 percent from June 2021 to June 2022.

LankaPropertyWeb’s Development Consultancy and Research Team data showed that the top five searches for apartments for sale were from Colombo 2, Colombo 3, Colombo 5, Colombo 6 and Rajagiriya.A resident from an apartment in Colombo 06 said, “We moved to this area due to the convenience, we spend less on transport and can go by bus, train or even walk to destinations. This was a massive saving for us during the peak of the fuel crisis.”

Sri Lanka’s overall residential land price has dropped by 62.90 percent, a seasoned constructor told EconomyNext. This is because people are no longer interested in investing in lands and are less motivated to build houses because of the high rates of interest for housing loans and there is value for money, he said.

Geethal Perera, an apartment builder in Colombo said: “Locals are not investing in assets or real estate because of the tumor in the economic conditions. However many overseas buyers are investing because the international value for money on the rupee is favorable.”The website also recorded a surge in search traffic from countries such as the UK, Australia, the US, Canada, and the UAE, said Tharindu Jayarathne, Head of Research at LankaPropertyWeb.



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Sun directly overhead Pomparippu, Anuradhapura, Mihinthale, Galenbindunuwewa, Agbopura and Serunuwara about 12:11 noon today (11)

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On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka from 05th to 15th of April in this year.

The nearest areas of Sri Lanka over which the sun is overhead today (11th) are Pomparippu, Anuradhapura, Mihinthale, Galenbindunuwewa, Agbopura and Serunuwara about 12:11 noon.

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Opposition NCM against Energy Minister defeated

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A no-confidence motion brought by the Opposition against Energy Minister Kumara Jayakody was defeated in Parliament yesterday by a majority of 104 votes.At the end of the debate, 49 members voted in favour of the motion, while 153 voted against it.

The motion, submitted to the Speaker on 19 March, was signed by Opposition Leader Sajith Premadasa, SJB MPs, and other Opposition members.

It accused Minister Jayakody of failing to ensure the procurement of adequate and quality coal for the Lakvijaya Coal Power Plant in Norochcholai, alleging that such negligence amounted to a breach of ministerial responsibility over a critical national energy asset.

The motion also cited ongoing legal proceedings against the Minister, noting that he has been indicted by the Commission to Investigate Allegations of Bribery or Corruption and produced before the Colombo High Court under Section 70 of the Bribery Act, in connection with alleged acts of corruption during his tenure as Procurement Manager of the Ceylon Fertiliser Company Limited.

The motion read: Vote of No Confidence against Kumara Jayakody, Minister of Energy,— Whereas the Provision in Section 6 of the Part III of the Code of Conduct for Members of Parliament which states that: “The Members shall on all occasions act in accordance with the public trust entrusted with them and shall always behave with probity and integrity, including the use by them of any public resources.” has been violated; And whereas the following rules of conduct set out in Section 9 of the Part V of the Code of Conduct for Members of Parliament have prima facie been breached, namely:- “(a) to be conscience; (c) to act so as to merit the trust and respect of the people; (e) to hold themselves accountable for the conduct and duties for which they are responsible;” And whereas it is observed that the Minister has failed, in his capacity as a Minister of the Cabinet of Ministers, to discharge the fundamental duties incumbent upon him in accordance with Article 28 of the Constitution;

And whereas it is established that the Minister of Energy has failed to discharge his primary duty of ensuring the procurement of adequate and good quality coal for the Norochcholai Lakvijaya Coal Power Plant;

And whereas such gross negligence in overseeing a critical national energy asset constitutes a fundamental breach of ministerial responsibility;

And whereas the Minister of Energy has failed to carry out the subjects and functions vested in him by the Notification of Gazette Extraordinary No. 2412/08 of 25th November 2024 of the Democratic Socialist Republic of Sri Lanka, including taking necessary steps to reduce the losses at the institutional management level and technical damages that occur to the electricity generation and distribution system and reduction of costs for generating electricity and removal of uncertainties during generation;

And whereas the Commission to Investigate Allegations of Bribery or Corruption has filed formal indictments before the Colombo High Court against the incumbent Minister of Energy under Section 70 of the Bribery Act (Chapter 26) for the offence of “corruption” in connection with acts of corruption allegedly committed while he was serving as the Procurement Manager of the Lanka Fertilizer Company;

And whereas, in light of the foregoing, the Minister of Energy has irretrievably forfeited the confidence of Parliament and the people of Sri Lanka by causing losses to public finances, endangering national energy security, corruptly mishandling the procurement process, being subjected to active judicial proceedings for the offence of “corruption”, and betraying the Government’s own “anti-corruption mandate”, and his continued tenure as the Minister of Energy is contrary to the public interest, the rule of law, and the principles of good governance;

That this Parliament resolves that it has no confidence in the competence of Kumara Jayakody, Minister of Energy to function as a Minister of the Cabinet of Ministers any longer.”

by Saman Indrajith

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Chinese Ambassador assures Lanka  China will not allow a fuel crisis to develop here

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Qi Zhenhong

Chinese Ambassador to Sri Lanka Qi Zhenhong yesterday assured that China would not allow a fuel crisis to arise in Sri Lanka, under any circumstances, reaffirming Beijing’s continued support to the country.

The Ambassador made these remarks addressing the media after attending a dry ration distribution programme for 350 low-income families at Sri Chandananda Buddhist College, at Asgiriya, in Kandy.

Highlighting the longstanding ties between the two countries, Ambassador Qi said China has consistently stood by Sri Lanka and remains ready to extend assistance whenever required.

Amid concerns over global energy disruptions, stemming from the ongoing Middle East conflict, he noted that several countries are already facing difficulties, but stressed that China is prepared to support Sri Lanka at any time.

He said that any potential fuel shortage in Sri Lanka could be managed with the involvement of China’s Sinopec.

Reiterating Beijing’s commitment to Sri Lanka’s economic recovery and development, the Envoy also expressed hope that the current ceasefire in the Middle East would hold, while assuring that China stands ready to respond to any future developments and assist Sri Lanka as needed.

By SK Samaranayake

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