Business
Blue Ocean Group urges govt to encourage foreign investment in residential real estate
By Sanath Nanayakkare
S. Thumilan, Group CEO/Chairman of Blue Ocean Group of Companies made the following remarks at a recent event held in Colombo to celebrate the 13th anniversary of the group of companies.
“Blue Ocean Group has showcased remarkable resilience by upholding core values of quality, integrity, and customer satisfaction. Amid economic challenges that forced many businesses to close or relocate, Blue Ocean Group not only persevered but also thrived. It is now expanding into new cities with several apartment projects.”
“The group’s strategy centers on achieving both differentiation and cost leadership, drawing inspiration from the Blue Ocean Strategy. This approach highlights value innovation by merging differentiation with cost efficiency, a deep understanding of market dynamics, and a steadfast commitment to ethics and transparency. These principles form the foundation of Blue Ocean Group’s dedication to ethical business practices and innovation.”
Thumilan, expressed pride in Blue Ocean Group’s contribution to Sri Lanka’s business landscape, stating, ‘We have firmly established ourselves in the country’s developmental history, transforming the corporate and real estate sectors. Our organic growth mirrors effective solutions to global challenges, contributing positively to the global development agenda.’
“The group has stayed resilient despite the multiple challenges due to our strategy centers on achieving both differentiation and cost leadership, drawing inspiration from the Blue Ocean Strategy. This approach highlights value innovation by merging differentiation with cost efficiency, a deep understanding of market dynamics, and a steadfast commitment to ethics and transparency. These principles form the foundation of Blue Ocean Group’s dedication to ethical business practices, innovation and regional diversifications of our projects.”
“Blue Ocean has successfully completed over 20 condominium projects up to now and 95% of them have handed over the final title deeds to the residents while others are in the process of issuing the deeds where the occupation is given to the owners. Now, the group has 10 ongoing projects which are being carried out meticulously to ensure their smooth conclusion like our previous projects.”
“Some foreign investors who invested in real estate and construction projects in Sri Lanka have stopped their projects, but Blue Ocean has steadfastly carried on ahead with their projects and have earned the trust despite the challenges created due to many reasons beyond our control such as in 2018 the civil riots & constitutional issues, in 2019 the Easter attack tragedy, in 2020 the COVID 19 global pandemic, 2021 onwards the bankruptcy declared by the CBSL and prevailing economic crisis”
“Apartments in Sri Lanka are more expensive than the apartments in India, Bangladesh, Thailand, Malaysia and Singapore. This is not the fault of the developers. The prices are high because of multiple taxes and unpredictable cost incurred. If the policymakers introduce more global practices when developers sell apartments to foreigners, the construction industry can bring more foreign currencies mainly the US dollars to the country in terms of remittances than foreign migrant workers and faster than Tourism. The foreign investors are not confident about buying apartments in Sri Lanka due to inconsistent tax policy as well as uncompetitive prices.”
“A lot of construction companies have had a bad hit due to subdued growth in the sector, and therefore, they are not recruiting new workforce, but Blue Ocean is making new recruitments under our Blue Ocean strategy which optimizes cost efficiency leadership in the industry and our diversification into the provinces. Those key elements of our strategy have enabled us thus far to weather the turbulent times of the industry and stay afloat without running into operational slowdowns. Our group has demonstrated its ability to manage the challenges and stay financially stable and operationally strong as a leading firm in the industry. We were able to identify the opportunities among the multiple challenges and make the best out of them. That is how even the country became bankrupt, we were able to survive.”
“As rules and regulations are too strict, the sale of apartments in Colombo has come to a halt. Sri Lanka needs to have more relaxed rules and regulations when it comes to the sale of apartments to foreign investors. It is a channel of bringing foreign direct investments to the country and we should take note of that fact more seriously. Of course, we understand that there needs to be a framework that adheres to global practices when foreign investors buy apartments in Sri Lanka. I think that the policymakers should weigh the benefits that foreigners get when buying apartments in other countries and implement a system to attract foreign buyers to buy our apartments. When they buy an apartment, they can only enjoy living in it. They can’t take it away. So, a robust framework needs to be in place to effectively deal with conflicting interests and sell our apartments to foreign investors and strengthen our foreign currency inflows. If we tap our apartment market with the potential foreign investors with the right policy shift, we won’t need the extended fund facility from the IMF to stabilize our economy,” Thumilan said.
To catalyze bilateral trade and investment and drive regional economic integration, the Consulate General of Sri Lanka in Mumbai facilitated a series of high-level strategic engagements between The Ceylon Chamber of Commerce and leading Indian commercial institutions on May 13 and 14.
The delegation from The Ceylon Chamber of Commerce was led by its Chairman Krishan Balendra, CEO of John Keells Holdings Pvt Ltd and comprised a distinguished group of Sri Lankan industry leaders from Hirdaramani Group, Maliban Biscuit Manufactories (Pvt) Ltd, Sierra Cables PLC, A. Baur & Co. (Pvt) Ltd, Jetwing Travels (Pvt) Ltd, Ceylon Biscuits Ltd, Hayleys PLC, Vidullanka PLC, MAS India Clothing (Pvt) Ltd, Tudawe Brothers (Pvt) Ltd, David Pieris Holdings (Pvt) Ltd, Bank of Ceylon, Aitken Spence PLC, LTL Holdings Ltd. and Orel IT Pvt. Ltd.
On May 13, The Confederation of Indian Industry (CII) and The Ceylon Chamber of Commerce jointly hosted the ‘India–Sri Lanka Business Forum: Partnering in Sri Lanka’s Growth and Investment’ and an exclusive CEO interaction in Mumbai. The forum convened senior government officials, policymakers, and industry leaders from both countries.
These included, among others, High Commissioner of Sri Lanka to India Mahishini Colonne; Consul General of Sri Lanka in Mumbai Priyanga Wickramasinghe; Senior Economic Advisor to the President of Sri Lanka Duminda Hulangamuwa; Secretary (Protocol, FDI, Diaspora & Outreach) and Chief of Protocol Government of Maharashtra Rajesh Ravindra Gawande; Co-chairman, CII Western Region Sub-committee on International Trade & Investment and Chief Executive Officer, Polycab India Ltd. Anurag Agarwal; Chairman, CII Western Region Sub-Committee on Tourism and Hospitality and Executive Director, Kamat Hotels India Ltd Vishal Kamat and Secretary General & CEO of The Ceylon Chamber of Commerce Shiran Fernando.
Conversations centered on accelerating cross-border cooperation across high-priority sectors, including technology, manufacturing, healthcare, renewable energy, and digital transformation.
On May 14, the delegation engaged in productive Business-to-Business sessions with the IMC Chamber of Commerce and Industry, culminating in the formal renewal of the Memorandum of Understanding between The Ceylon Chamber of Commerce and IMC. The delegation also participated in an interactive session hosted by the World Trade Center (WTC) Mumbai and the All India Association of Industries (AIAI).
The two-day mission concluded with a robust exchange of views cementing a strong foundation for sustained bilateral collaboration and paving the way for a new era of industrial synergy between Colombo and Mumbai. (Consulate General of SL, Mumbai)
Demonstrating its commitment to supporting the nation’s next phase of economic transformation, Commercial Bank of Ceylon has become one of the first banks in Sri Lanka to enter into an agreement to establish a fully-fledged branch at Port City Colombo, marking a significant step in the Bank’s strategic expansion into the country’s emerging international financial hub.
The agreement was signed by Sanath Manatunge, Managing Director/CEO of Commercial Bank, and Xiong Hongfeng, Managing Director of CHEC Port City Colombo (Pvt) Ltd. The partnership further reinforces Commercial Bank’s position at the forefront of Sri Lanka’s evolving financial landscape.
The proposed branch will function as a fully-fledged banking branch, offering a full spectrum of products and services tailored to the needs of corporates, investors, businesses and retail customers operating within the Port City Colombo ecosystem. These will include digital banking facilities, trade services, foreign currency transactions, corporate banking solutions, deposits, lending, card services and remittance facilities.
By establishing a presence within Port City Colombo, the Bank said it aims to further strengthen its ability to support cross-border business and investment flows while positioning itself to meet the sophisticated requirements of global investors, multinational corporates and high-net-worth individuals expected to operate within the Special Economic Zone.
Commenting on this ground breaking initiative, Sanath Manatunge, Managing Director/CEO of Commercial Bank said the Bank’s decision to establish a fully-fledged branch within Port City Colombo reflects both its long-term confidence in the project and its readiness to support the evolving needs of a globally integrated financial ecosystem.
“As Sri Lanka’s largest private sector bank with a strong track record in serving corporates, international clients and high-value businesses, we see Port City Colombo as a pivotal development in the country’s economic future,” he said. “Our presence within this Special Economic Zone will enable us to seamlessly support cross-border transactions, facilitate international trade and investment, and deliver world-class banking solutions backed by advanced digital capabilities. Being one of the first banks to formalise plans for a full-service branch within Port City Colombo reaffirms our role as a pioneer in driving financial innovation and supporting national development.”
A 269-hectare extension of Sri Lanka’s central business district, Port City Colombo is being developed as a multi-service Special Economic Zone designed to serve as a regional financial centre, business and lifestyle hub. One of the largest public-private partnership projects in the country, it is envisioned as a catalyst for high-value investments, underpinned by advanced infrastructure, cutting-edge technology and a progressive regulatory framework.
“Our role as master developer goes beyond building the city itself. It is about creating the foundations for a functioning international business and financial hub,” said Mr Xiong Hongfeng, Managing Director of CHEC Port City Colombo (Pvt) Ltd. “The establishment of institutions such as Commercial Bank within Port City Colombo is an important part of that process, because it brings real operational depth and credibility into the ecosystem from an early stage. It reflects the broader momentum behind the project and the growing shift towards a more globally connected, investment-driven economy in Sri Lanka.”
Sri Lanka’s renowned specialty tea brand “Singharaja Wiry Tips,” produced by Lumbini Tea Valley Ceylon, has won two major accolades at the prestigious “The Leafies International Tea Awards” held recently at Fortnum and Mason in the United Kingdom.
The award-winning low-grown Ceylon tea secured the titles of “Best Ceylon Black Tea” and the overall “Best of All Black Teas,” emerging as the top black tea entered at the international competition.
With these latest honours, “Singharaja Wiry Tips” has now earned its 43rd and 44th international awards, further strengthening its reputation as one of the world’s most highly awarded black teas.
Classified as FBOPF EX SP (Flowery Broken Orange Pekoe Fannings Extra Special), the tea is named after its distinctive golden-tipped wiry leaves and unique flavour profile derived from the ecosystem surrounding the UNESCO World Heritage-listed Singharaja Rainforest, which borders the Lumbini plantation.
Lumbini Tea Valley’s latest innovation, “Lumbini Screw Buds,” also received high commendation at this year’s competition, highlighting the company’s continued excellence in producing premium Ceylon teas.
Chairman and Managing Director Chaminda Jayawardena, who accepted the awards in London, credited the achievement to the dedication of the Lumbini workforce and the support of nearly 1,800 tea farmers supplying high-quality green leaf harvested using the traditional “two leaves and a bud” method.
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