Business
Colombo’s looming housing crunch: ‘Brace yourself for rising apartment prices’
By Rohan Parikh
As the Sri Lankan economy continues to grapple with the effects of the recent economic crisis and the slow pace of recovery, the country’s real estate market is also struggling to cope, particularly since the upcoming housing crunch in Colombo is now starting to raise concerns for both developers and prospective homeowners alike.
Colombo’s current inventory of apartments is expected to sell out soon, and contrary to popular belief, only a handful of new projects are currently in development as most developers have been adversely affected by the crisis- thus it is likely that the market will face a shortage of apartments.
This is a worrying trend to point out, as this indicates that the limited availability of apartments will lead to a surge in apartment prices, making it difficult or near impossible for prospective homeowners to find affordable housing in the city.
The housing crunch in Colombo is not only a concern for developers and prospective homeowners but also for the overall economic growth of the country. The lack of affordable housing can lead to a decrease in workforce, as people may not be able to afford living in the city and may have to relocate to other, more sub-urban areas. This could have a significant impact on the demand for goods and services and ultimately affect the country’s economic stability.
However, Sri Lanka has received a $3 billion loan from the International Monetary Fund (IMF) to help resolve the spiralling economic crisis that began after Sri Lanka defaulted on its debt in April 2022.
To address the upcoming housing crunch in Colombo, it is imperative that the Sri Lankan Government takes proactive steps to incentivize developers to invest in new projects. This could include offering tax breaks and other financial incentives, as well as streamlining approval processes and providing infrastructure support.
By encouraging the development of new housing stock, the government can not only help to alleviate the shortage of affordable housing in Colombo but also boost economic growth and create job opportunities in the construction sector. This, in turn, could help to stimulate demand for other goods and services, contributing to the overall development of the country’s economy.
However, given the current state of the real estate market and Sri Lanka’s economic situation, it is unlikely that these incentives will have an immediate impact, indicating that it could be a while before developers are able to make sizeable investments in new projects, leaving a gap in the market for new housing options.
As the Sri Lankan real estate sector confronts the challenges of a post-crisis landscape, it’s clear that the future of the industry depends on the ability of local developers to adapt and innovate. The upcoming housing crunch in Colombo is just one of the many obstacles that developers must overcome to succeed in the market. But with the right mind-set, strategies, and partnerships, there is still a path forward for the industry.
Iconic Developments is well-positioned to navigate the upcoming housing crunch in Colombo. Iconic Developments has established itself as a leading developer in the Sri Lankan real estate market, with a reputation for delivering innovative and high-quality projects that meet the evolving needs of the market. The company’s commitment to excellence has earned it a loyal customer base that values its attention to detail, customer satisfaction, and sustainable development practices.
Iconic Developments’ track record of success, commitment to excellence, and customer-centric approach make it a highly sought-after developer in the Sri Lankan real estate market, poised to navigate the upcoming housing crunch in Colombo and deliver sustainable, innovative projects that meet the evolving needs of the market.
Moreover, Iconic Developments has already taken steps to ensure that it has a strong pipeline of projects in the coming years. By strategically acquiring land in key areas of Colombo and investing in the latest technology and construction methods, the company is well-equipped to deliver new projects that meet the evolving needs of the market.
In conclusion, while the challenges facing the Sri Lankan real estate industry are daunting, the future remains bright for developers who are willing to adapt and innovate. By focusing on quality, sustainability, and customer satisfaction, developers can thrive in the post-crisis landscape, and create a better future for everyone.
Rohan Parikh is the Managing Director of Iconic Developments and has had a 20+ year career in Real Estate Development and graduated from the Wharton School of Business in the U.S.
Business
SLT MOBITEL and Fintelex empower farmers with the launch of Yaya Agro App
SLT‑MOBITEL Mobile, in collaboration with Fintelex (Pvt) Ltd, has launched ‘Yaya Agro’, an exclusive all‑in‑one smart agriculture app designed to empower Sri Lankan farmers with the tools they need to grow smarter, safer, and more sustainably.
Yaya Agro represents a new era of digital farming in Sri Lanka combining technology, expert knowledge, and community empowerment to provide farmers the confidence to make smarter decisions, improve productivity, and build a sustainable future.
Developed with support from GIZ and Hatch and validated by leading academic and professional institutions including the University of Colombo, Institute for Agrotechnology and Rural Sciences, and the Sri Lanka Red Cross Society, Yaya Agro combines agricultural expertise, real‑time weather updates, first aid support, and AI‑powered assistance into a single, easy‑to‑use platform.
The launch of Yaya Agro positions SLT‑MOBITEL as an innovative, inclusive, and collaborative technology leader. Partnering technology and academic institutions, the company extends its role outside the sector into agriculture, empowering farmers with AI‑driven tools, multilingual access, and market connectivity. The initiative also strengthens SLT‑MOBITEL’s image as a champion of digital empowerment and sustainable development in Sri Lanka.
Functioning as a comprehensive digital companion, Yaya Agro is positioned as a digital farming companion, bringing precision agriculture, real‑time support, and market access to the fingertips of every Sri Lankan farmer.
Whether managing a small home garden or a large commercial farm, the app equips farmers with vital insights to improve crop yield, reduce risks, and connect directly with buyers through the integrated online marketplace.
Yaya Agro offers farmers daily crop information with expert tips on management, pest control, and best practices, all validated by the University of Colombo. It provides accurate, location‑based weather forecasts to help plan farming activities more effectively. The app also delivers life‑saving first aid tutorials and safety information verified by the Sri Lanka Red Cross Society, ensuring farmers are prepared for emergencies. With the AI chatbot assistant, farmers can access instant, personalized advice around the clock, with smart notifications delivering timely alerts and reminders tailored to crop cycles.
To make learning inclusive and accessible, Yaya Agro is available in Sinhala, Tamil, and English, offering interactive educational content such as videos, voice guides, and infographics. The app also integrates an online marketplace, developed in partnership with GIZ and Hatch, enabling farmers to connect directly with buyers and expand their reach. (SLT‑MOBITEL )
Business
Kegalle sets up District Planning Committee to rein-in development spending under IMF-backed reforms
As Sri Lanka presses ahead with IMF-backed fiscal and governance reforms, the Kegalle District Planning Committee (DPC) was formally established yesterday as a standing sub-committee of the District Coordinating Committee (DCC), in a move aimed at tightening control over public investment, reducing duplication and strengthening monitoring at district level.
The committee was constituted under Home Affairs Circular No. 03/2025 issued by the Ministry of Public Administration, Provincial Councils and Local Government, and was inaugurated at the Kegalle District Secretariat auditorium under the leadership of Environment Minister and DCC Co-Chair Dr. Dhammika Patabendi and District Secretary H.M.J.M. Herath.
Addressing officials, Dr. Patabendi said the new structure directly responds to long-standing weaknesses in public investment management that have come under scrutiny during Sri Lanka’s engagement with the International Monetary Fund.
“Under the IMF programme, we cannot afford fragmented planning, overlapping projects or weak monitoring. This committee is about discipline—ensuring that limited public funds are allocated according to national priorities and deliver measurable outcomes,” Dr. Patabendi said.
He stressed that district-level planning must now align with national fiscal consolidation goals, with a stronger emphasis on value-for-money, results-based implementation and accountability.
The District Planning Committee will function as a permanent sub-committee of the DCC, chaired by the district’s Cabinet Minister, with the District Secretary serving as Secretary and the Director of Planning as Convener. Members include officials from district-level price and food committees and heads of government institutions or their nominees.
A central mandate of the committee is the preparation of an Annual Integrated District Development Plan, covering all funding sources—including foreign-funded and donor-supported projects—for approval by the District Coordinating Committee.
Officials said this would help rationalise project selection, prioritise urgent district needs and prevent the duplication of monitoring and evaluation systems, a key concern raised in public investment reviews under the IMF programme.
Dr. Patabendi noted that better coordination of state, private and non-state sector investments at district level would also support macro-level reform objectives by improving spending efficiency without increasing fiscal pressure.
“Fiscal adjustment does not mean stopping development. It means doing development better—through planning, coordination and proper evaluation,” he said.
The committee will oversee the operational rollout of DCC-approved projects, provide advisory support to implementing agencies, and monitor whether projects are delivered within approved timeframes and achieve stated targets.
Progress reports will be submitted to the Presidential Secretariat, Ministry of Public Administration, Ministry of Finance and the District Coordinating Committee, strengthening upward accountability.
At yesterday’s meeting, officials reviewed development proposals linked to the 2026 Budget, with focus on education, health, agriculture, infrastructure, industry, environment and tourism—sectors seen as critical for growth and social protection during the reform period.
Implementation challenges faced by projects carried out in 2025 across several Divisional Secretariat areas were also examined, with discussions centred on resolving bottlenecks early in 2026 and aligning future investments with the district’s five-year development plan.
Senior provincial and district officials, Members of Parliament from Kegalle, local authority heads and divisional secretaries attended the meeting.
Dr. Patabendi said the establishment of the District Planning Committee marked an important step towards embedding IMF-aligned public financial management reforms at the grassroots level, ensuring that development spending contributes to economic recovery while safeguarding fiscal sustainability.
By Ifham Nizam
Business
Allianz commits €200,000 for post flood recovery in Sri Lanka, part of €600,000 regional relief for Southeast Asia
Allianz SE (Headquartered in Munich, Germany) announced that it is donating €200,000 to support disaster relief efforts in Sri Lanka. In addition, Allianz SE is also extending its support to Thailand and Indonesia, contributing a further €400,000 to aid disaster relief across Southeast Asia. Torrential rainfalls have triggered severe flooding and landslides across Southeast Asia, leaving more than 1,100 people dead in a week of devastation and complicating rescue efforts for hundreds still missing. Allianz is deeply rooted with local entities in the three countries and serving millions of customers across Asia. By supporting the affected people and communities, Allianz acts on its promise to secure the future of its stakeholders in times of need.
Allianz SE will allocate €100,000 to the Sri Lanka Red Cross Society (SLRCS) to deliver immediate assistance to those most affected and €100,000 will also be provided for post-disaster support, implemented in collaboration with Allianz Insurance Lanka Limited and selected local partners, focusing on disaster prevention and climate resilience, helping communities rebuild and strengthen their preparedness against future events.
Renate Wagner, Member of the Board of Management of Allianz SE, responsible for Asia Pacific, Mergers & Acquisitions, People and Cultures says:
“At Allianz, we stand with the people and communities affected by the severe floods and landslides across Southeast Asia. Through immediate relief and long-term resilience support, we aim to help families recover, strengthen local communities, and better prepare for future climate-related events.”
Anusha Thavarajah, Regional Chief Executive Officer, Allianz Asia Pacific adds:
“Across Indonesia, Thailand and Sri Lanka, many families and communities are facing significant loss and disruption. In moments like these, Allianz stands alongside them. Asia Pacific is home to our people, our customers, and the communities we serve, and we remain deeply committed to the region. Our immediate focus is on providing relief where it is most needed, while also supporting communities to rebuild and strengthen resilience, so those most affected can move forward with confidence.”
Allianz is fully dedicated to Asia and its people. It represents a strategic growth region for Allianz Group, which already has established strong market positions throughout Southeast Asia. Besides Indonesia, Thailand and Sri Lanka, Allianz is present with various business segments in China, India, Malaysia and Singapore, among others.
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