Business
Introducing REITs in Sri Lanka: ‘An opportunity to benefit from real estate investment’
The Colombo Stock Exchange (CSE) and the Securities and Exchange Commission of Sri Lanka (SEC) announce the launch of Real Estate Investment Trusts (REITs) which now give average investors an opportunity to reap the benefits of real estate investment and the advantages associated with investing in publicly traded securities on the CSE. While investing in real estate appears to be a popular choice, the rising cost of property poses a significant challenge to individual investors who typically resort to bank loans to finance such investments. This timely introduction by the CSE and SEC provides greater access to all investor segments to commercial real estate projects and an opportunity to benefit from the recently observed spiraling property prices.
REITs were first introduced in the United States in 1960 creating a mechanism for individual investors’, especially middle-income earners, to generate income through investing in large commercial real estate. This product has made rapid progress within the Asian markets as well with its growing popularity especially in Thailand, Malaysia and India and is also viewed as a mechanism to broad base the real estate ownership within a country. A REIT is essentially a structure which typically owns and operates income-generating real estate. The income-generating real estate assets owned by a REIT may include office buildings, shopping malls, apartments, hotels, resorts, self-storage facilities and warehouses.
A REIT would enable unit holders to earn a portion of the income that is generated through renting, leasing or selling these properties which is required to be distributed directly to the unit holders of the REIT. The CSE and SEC have introduced a framework which mandates the distribution of 90% of the generated income to its investors.
This innovative introduction, which has been formulated specifically taking into consideration the local environment, would open up new horizons for real estate developers and owners to convert completed income generating projects into a REIT, have its units listed on the CSE following the mechanism now made available to them and have them publicly traded in the secondary market, similar to equity securities listed on the CSE.
The framework for REITs has been introduced by the SEC via rules made by the SEC in terms of section 53 and 13 of the SEC Act which came into effect from July 31, 2020 in the form of a gazette notification. The comprehensive formation of SEC rules will govern the overall mechanism of REITs in Sri Lanka. The CSE has also formulated listing rules for the listing of units of REITs. A REIT would enable investors to further diversify their portfolios by investing in this lucrative investment vehicle which would produce long-term returns. Investors would benefit from a stable stream of income, swift entry and exit route through the secondary market and also benefit from the returns of the overall real estate asset appreciation.
The economy at large would also benefit from the introduction of REITs with the anticipated creation of jobs, economic growth, increased tax revenues, liquidity through listing and would also attract foreign direct investments into the country. REITs would also require stronger corporate governance and increased transparency which would help the investor community and regulatory bodies to assess the viability and quality of projects.
Similar to any stock market investment, the investor is required to take into account his/her own financial status and also consult with an investment advisor prior to making an investment decision. A review can also be carried out on the REIT’s disclosure filings, including the annual and quarterly reports, prior to making a decision to invest in REITs.
The CSE and SEC will continue to focus on setting up a more conducive environment along with the regulatory authorities to facilitate greater company and investor participation.
Business
SIA warns of 1,000 SME collapses, urges fair policies to protect Sri Lanka’s rooftop solar sector
By Sanath Nanayakkare
The Solar Industries Association (SIA), representing over 1,000 companies and employing 40,000 workers in Sri Lanka’s rooftop solar sector, issued a stern warning recently regarding threats to the industry’s survival and the nation’s renewable energy ambitions. The association condemned recent regulatory instability and called for urgent policy reforms to avert economic and social crises.
The SIA categorically rejected the Ceylon Electricity Board’s (CEB) claim that rooftop solar installations caused the recent island-wide power outage, calling the accusation “baseless and misleading.”
“Public trust is eroded when accountability is misdirected,” the SIA stated. “We demand an independent, transparent investigation led by experts appointed by the Ministry or the Public Utilities Commission (PUCSL). The CEB’s unilateral statements disregard the sector’s contributions and jeopardize Sri Lanka’s renewable energy transition,” they said.
“While acknowledging the formation of a tariff determination committee, the SIA criticized its narrow focus on financial parameters, ignoring the sector’s socioeconomic value. Rooftop solar empowers businesses and households with energy independence, reduces grid strain, and supports climate goals. However, proposed volatile tariff structures risk destabilizing over 100,000 installations—primarily owned by middle-class families—and deter future investment,” they noted.
“A rigid, equation-based tariff system is unsustainable,” the association warned. “Sri Lanka needs a stable policy framework to attract long-term investments. For instance, retirees could invest EPF savings into solar projects, securing income while advancing national energy targets. Without urgent action, 1,000 SMEs and 40,000 jobs face collapse, with dire consequences for employment, energy security, and economic stability,” they pointed out.
SIA urged policymakers to establish an independent committee to investigate the power outage fairly, expand the tariff committee’s mandate to include socioeconomic and environmental benefits and implement predictable policies to safeguard SMEs, households, and investor confidence.
“Sri Lanka stands at a crossroads,” the SIA emphasized. “Protecting rooftop solar isn’t just about energy—it’s about livelihoods, economic resilience, and a sustainable future. We urge stakeholders to collaborate on solutions that prioritize both people and progress,: they emphasized.
Starting its promotional work for 2025, Sri Lanka Tourism Promotion Bureau (SLTPB) added another feather into its cap of endorsements, by being recognized as the most innovative Tourism Board promotion in Outbound Travel Mart (OTM) . In parallel to that, several other sub events were held. The OTM was held in Jio World Convention Centre, Mumbai—India, from 30th January to 01st February 2025.Before OTM, the Global Village – Global Exchange & Trade Exhibition was held at the Surat International Exhibition & Convention Centre , Sarsana, Surat (Gujarat – India , from 25th to 27th January 2025. This travel fair was organized by Southern Gujarat Chamber of Commerce and Industry (SGCCI).
Sri Lanka participated in both OTM and South Asia’s Travel & Tourism Exchange (SATTE), held from 19th – 21st Feb 2025, in New Delhi, India . This was an excellent opportunity for Sri Lanka to promote it’s potential as a unique travel destination, especially for the Indian counterparts, as SLTPB has identified India as the number one source market for Sri Lanka, tourism bringing the largest number of tourist arrivals to the destination.
SLT-MOBITEL has entered into a strategic partnership with Rush Lanka Group to provide exclusive SLT-MOBITEL Fibre connectivity solutions to their portfolio of luxury apartment developments in Colombo and the suburbs, enhancing the digital experience of all residents.
The agreement was signed between Imantha Wijekoon, Chief Business Officer of Consumer Business at SLT, and Zaid Ariff, Director of Construction at the Rush Group headquarters. Representatives from both companies also attended the ceremony.
Under the partnership, SLT-MOBITEL will serve as the exclusive digital service provider for five prestigious Rush Lanka developments including Street Rush Residencies and Rush Court 4 in Mt. Lavinia, Rush Tower 2, Rush Metropolis in Dehiwala, and Rush Court 5 in Colombo 14. The collaboration ensures residents will enjoy superior fibre connectivity speeds, enabling seamless digital experiences in modern smart homes. The partnership with the Rush Lanka Group aligns with SLT-MOBITEL’s commitment to offer ultra-fast, reliable connectivity solutions to residential developments. Delivering exclusive fibre connectivity to luxury apartments, SLT-MOBITEL ensures residents have access to world-class digital services that complement the living experience promised by Rush Lanka Group.
Powered by advanced fibre technology, SLT-MOBITEL network will provide the residences with seamless performance across digital activities. The SLT-MOBITEL Fibre backbone ensures lag-free experiences whether tenants are gaming online, attending virtual classes, working remotely, or streaming high-definition entertainment. SLT-MOBITEL Fibre will transform the lifestyles of all apartment users bringing greater convenience and superior quality of life.
Rush Lanka Group, established in 1992, is a property developer specializing in luxury and semi-luxury apartments.
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