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SEC introduces framework for Real Estate Investment Trusts

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From left to right Rajeeva Bandaranaike CEO CSE, Dr. Harshana Suriyapperuma, Director Corporate Affairs SEC, Chinthaka Mendis DG SEC, Viraj Dayaratne chairman SEC, Dumith Fernando, chairman CSE and Ms. Ayanthi Abeywickrema, Director-Legal and Enforcement SEC

 

In Sri Lanka, owing to spiraling property prices it is a challenge for average citizens to finance real estate investments. Therefore, a significant proportion of the population of Sri Lanka is unable to benefit from the value appreciation of property and infrastructure development.

The issue can be resolved by introducing a mechanism where capital is pooled by people who are willing to invest in prime commercial and residential property and they will benefit from property related income and value appreciation in the long term. Such pooled funds could be used to acquire prime residential and commercial property and income and wealth derived from such property is then shared with the unit holders of the fund.

Real Estate Investment Trusts (REITs) have been available for some time and are developing rapidly in Asia and are popular particularly in Thailand, Malaysia and India. The Securities and Exchange Commission of Sri Lanka (SEC) along with the other stakeholders have been contemplating the introduction of REITs framework in Sri Lanka for quite some time although no finality had been reached. The SEC has now facilitated the introduction of a REIT framework and the proposed initiative provides real estate developers and owners to convert fully completed properties into a REIT which will provide an avenue for the general public of Sri Lanka to make an investment and thereby benefit from any property value increases. Corporate Bonds were introduced to the capital market in Sri Lanka in 1997 and it is approximately, after 23 years that a new product by way of REITs is being introduced.

The Sri Lankan REITs structure has considered the local environment in which it is expected to operate and the SEC has brought in a regulatory framework that is best suited to our market. The rules that have been introduced by the SEC will be an extension of the current Unit Trust Code and the new rules, which came into effect from July 31 is in the form of a Gazette Notification published by the SEC. These rules which are comprehensive, will govern the setting up of and the conduct of a Sri Lankan REIT. Specific provisions have been included for the verification of title and valuation of property that will form part of the assets of the REIT.

Among the requirements is the mandatory distribution of approximately 90% of income to the unit holders, which is currently not a requirement for any of the listed entities. Further, due to the availability of the tax pass through mechanism to Unit Trusts, REITs also could benefit to be a viable business concept to Sri Lanka that will open new horizons for entrepreneurs to take the real estate industry to greater heights.

This property backed alternative platform offers unique benefits to the investing public and to the nation as a whole.

Benefits to investors include:

* High dividend – since requirement to pay at least 90% of their income as a dividend

*Relatively stable income stream due to long leases

* Investor protection ensured since regulated by SEC

* Swift entry and exit opportunities

* Opportunity for portfolio diversification

* Professional investment management at a relatively low transaction and management cost

* An effective hedge against inflation due to real estate asset backing

Benefits to the country include:

* Optimize land usage due to vertical high-rise building complexes and mixed developments

* A catalyst for foreign investment

* liquidity added to market through listing

* Improved investor confidence through increased transparency created through the disclosure requirements

* Increased tax revenue

*Facilitation of planned urbanization with controlled congestion

* Environmental benefits

* Employment creation

* Contribution to the country’s capital formation

* GDP growth

* Optimize capital allocation

Many real estate owners/developers can immediately benefit from the Unit Trust based REITs framework, which is now enabled under the capital market framework of the SEC. In order to promote transparency and to distribute ownership among people of Sri Lanka, REITs are only allowed as listed REITs on the Colombo Stock Exchange. (SEC)

 



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HNB Assurance Elevates ‘Liya Harasara’ 2026 with Unmatched Benefits to Honor the Spirit of Womanhood

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HNB Assurance PLC launched the 2026 edition of Liya Harasara, its flagship annual initiative dedicated to celebrating and empowering women in line with International Women’s Day. Recognized as one of the most anticipated campaigns of the year, Liya Harasara continues to evolve, delivering meaningful protection and exclusive privileges designed to support women in every stage of life.

This year’s edition introduces the most rewarding benefits in the history of the initiative. Women who sign up for eligible Regular Premium Life Insurance policies will receive a Free Life Cover of up to Rs. 2 Million for one year, along with a Free Critical Illness Benefit of up to Rs. 500,000, providing enhanced financial security and reassurance when it matters most. Additionally, female policyholders are also entitled to pregnancy related hospitalization cash benefit for Life Insurance Policies with in-force Hospitalization Benefit, for a maximum of three days per annum.

Commenting on the significance of this year’s campaign, Lasitha Wimalarathne, Executive Director / CEO of HNB Assurance, stated: “As we mark our 25th year as a trusted life insurer, we wanted Liya Harasara 2026 to reflect the strength of the journey that brought us here. For 25 years, women have been at the heart of our story, as leaders, advisors, customers and changemakers. This special edition is our way of honoring that partnership and reaffirming our commitment to protecting their aspirations for the future. When women progress, families prosper and communities thrive and we are proud to stand by them with meaningful protection and lasting assurance.”

Sharing his thoughts, Dinesh Yogaratnam, Chief Marketing and Customer Experience Officer of HNB Assurance, added, “Liya Harasara has grown into more than just an annual campaign, it is a tribute to the Spirit of Womanhood, to resilience, ambition and strength. The 2026 edition has been thoughtfully enhanced to deliver greater value and deeper impact, ensuring women receive protection that truly supports their ambitions and wellbeing. We remain committed to creating solutions that empower confidence and provide peace of mind, enabling women to focus on achieving their goals without compromise.”

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Seven decades of sartorial excellence: The legacy of Linton Master Tailors in Kandy

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In the 1950s, Linton Wimalasena Udagagedara served as the tailoring instructor at the rehabilitation unit of the Bogambara Prison. Known affectionately by all as “Linton Master,” he laid the foundation for a legacy that would eventually redefine men’s fashion in the hill capital.

In 1958, Linton Master ventured into private business by renting a small shop in Trincomalee Street, Kandy, under the name “Linton Master Tailors.”

Supported by a handful of employees and the unwavering strength of his wife, Srima Alwala, the business began its humble journey. In those early days, Linton Master would travel from Kandy to Pettah, Colombo, walking miles to handpick high-quality fabrics at affordable prices. Though the initial years were a struggle, he never compromised on quality.

Due to his commitment to superior craftsmanship and impeccable finishing, “Linton Master’s Shop” in Trincomalee Street soon became a household name across the Kandy region. By the 1970s, the thriving business moved to Yatinuwara Veediya. As the enterprise grew, Linton Master eventually purchased the rented building and the adjacent premises. In the 1990s, the brand reached its zenith, becoming a hallmark of excellence.

Following the passing of Linton Master in 2009, the business transitioned into a new era. Today, it stands proud at the same familiar location in Yatinuwara Veediya, rebranded as “Linton & Sons Master Tailors.” His legacy is carried forward by his children; while one son manages a printing press and a daughter runs a bridal wear brand under the Linton name, his son Nidarshana Udagagedara has significantly expanded the core tailoring business.

Today, Kandy is home to three main institutions bearing the prestigious Linton brand. Linton & Sons Master Tailors, now employing around 20 skilled professionals, is a nationally recognized name. Known for their international standards, it is said that anyone who gets a full suit tailored at Linton & Sons invariably returns for their second.

The business that once started with fabric handpicked from Pettah now utilizes world-renowned international brands. Linton & Sons is currently the only tailor shop in Kandy that creates garments using prestigious fabrics such as Raymonds, Pacific Gold, Medici, and Macone.

Current Chairman Nidarshana Udagagedara notes that they serve a loyal customer base, with complete groom’s suit packages ranging from Rs. 30,000 to Rs. 90,000. With a highly experienced team, they now offer an exclusive one-day service, allowing customers to have bespoke designs created to their exact specifications in record time.

Spanning seven decades, the Linton lineage, which has brought fame to Kandy, has now successfully expanded from the second generation to the third, ensuring that the master’s stitch continues to define elegance for years to come.

By S.K. Samaranayake

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LANKATILES Captivates Architect 2026 with a Spectacular Celebration of Fine Living

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Overall Best Stall and Best Trade Stall Displaying Local Products awards at Architect 2026

At the prestigious Architect 2026 Exhibition, LANKATILES unveiled an immersive Concept Studio of contemporary design, where every surface spoke in allusive ways of exquisite craftsmanship and architectural vision.

Among a host of outstanding participants, the Concept Studio was recognized with two of the exhibition’s highest accolades: Overall Best Stall and Best Trade Stall Displaying Local Products. This is a resounding testament to five decades of trust, quality, and innovation.

The Concept Studio was thoughtfully zoned to evoke the ambiance of curated interiors and sophisticated entryways, unveiling the latest designs introduced to the market. Visitors were guided through a seamless spatial journey, beginning with the Living Zone, where expansive surfaces harmonized durability with refined design to elevate everyday living. The Kitchen Ambience Zone presented a contemporary culinary environment enriched with elegant finishes, demonstrating how functionality and elevated aesthetics coexist in modern homes.

The experience continued into the Bedroom Zone, an intimate and serene setting curated with soothing palettes and luxurious surfaces to create a tranquil retreat defined by comfort and understated elegance. Complementing this was the Bathware Zone — a sanctuary of calm showcasing precision-crafted porcelain surfaces that seamlessly blended purity of form with superior performance, redefining modern bathroom sophistication.

Extending beyond interiors, the Poolside Zone highlighted elegant outdoor settings framed by resilient, high-performance tiles, where aesthetic excellence met enduring strength in expressive interpretations of contemporary luxury. Featuring the latest Mosaic designs alongside the grand large-format tile series, Majestica, each zone illustrated how LANKATILES transforms raw materials into architectural poetry, reinforcing its leadership in innovation and design excellence.

Another defining feature of the Concept Studio was the AI-powered Tile Visualizer; an advanced digital interface designed to offer architects and homeowners an intelligent and immersive visualization experience that redefines the way interiors are selected and conceptualized. Within minutes, users can upload an image of their dream space and instantly explore precisely matched tile designs and colour palettes tailored to their aesthetic preferences.

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