Construction & Real Estate
From The Report: Sri Lanka 2016
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Sri Lanka’s construction industry has been a major beneficiary of the country’s rapid economic development over the past six years. Since the end of the civil war in May 2009, the country has rushed to make up for more than two and a half decades of intermittent building activity across most segments, from high-end residential housing to commercial and office space to a variety of key infrastructure segments. In 2015 and early 2016 Sri Lanka’s real estate market expanded rapidly, continuing a medium-term growth trend that has been fuelled by an increased appetite for residential property among the nation’s wealthy and middle-class population, growing demand for grade-A office and commercial space from local and foreign corporates, and rising interest in the country as a tourist destination.

This chapter contains a viewpoint from Patali Champika Ranawaka, Minister of Megopolis and Western Region Development; and an interview with Ranjit Fernando, Chairman, Urban Development Authority.

Articles from this Chapter

Overview

Growth spurt: The sector is seeing a flurry of activity as the country rushes to make up for years of underinvestment
OBG
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The construction industry has been a major beneficiary of Sri Lanka’s rapid economic development over the past six years. Since the end of the country’s civil war in May 2009, the country has rushed to make up for more than two and a half decades of intermittent building activity across most segments, from high-end residential housing to commercial and office space to a variety of key infrastructure segments. According to NDB Securities (NDBS), a brokerage based in Colombo, in 2014 Sri Lanka’s…

Analysis

Luxury living: Demand for high-end housing bodes well for contractors and materials suppliers alike
OBG
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Despite a slight slowdown in building activity in Sri Lanka in 2015 – due primarily to uncertainty around presidential and parliamentary elections in January and August, respectively – rising demand for residential real estate points to long-term growth in the construction sector in the coming years. In a report released in November 2015, Asia Securities, a Colombo-based equities brokerage, cited rising household incomes and cheaper credit as key factors behind a medium-term shift in construction…

Viewpoint

Western promise: Patali Champika Ranawaka, Minister of Megapolis and Western Region Development, on transforming Colombo
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The very proposition of making Colombo a globally competitive city has come to be viewed from a broader perspective, including the entire western province centred around Colombo. This approach was born out of the need to consider not just economic prosperity, but also social justice and environmental sustainability. On the economic front, Sri Lanka’s long stagnation in the lower-middle-income territory has underscored the need for the development of a large geographic region through intense economic…

Interview

Building blocks: OBG talks to Ranjit Fernando, Chairman, Urban Development Authority
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Interview:Ranjit Fernando What do you see as the most viable solutions to integrated transport in Colombo? RANJIT FERNANDO: The only answer is mass transport. It is not enough to expand the roads alone. These are essential, but the middle class is growing and buying vehicles. September 2015 alone brought around 23,000 new vehicles to the country. This is a result of public transport being so poor. This needs to be looked at in three tiers. The first tier is the seven corridors going into…

Overview

High rise: Demand-driven growth across the sector set to support local developers
OBG
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In 2015 and early 2016 Sri Lanka’s real estate market expanded rapidly, continuing a medium-term growth trend that has been fuelled by an increased appetite for residential property among the nation’s wealthy and middle-class population, growing demand for grade-A office and commercial space from local and foreign corporates, and rising interest in the country as a tourist destination. Since the end of Sri Lanka’s civil war in 2009, the real estate market has grown exponentially, as developers…

Analysis

View from above: Apartments have jumped in popularity in recent years, particularly at the top end of the market
OBG
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As of late 2015 Sri Lanka’s Western Province made up just 6% of the country’s total land area, but was home to 28% of the population, according to the Ministry of Megapolis and Western Development (MMWD), which was formed in mid-2015. Patali Champika Ranawaka, the minister of megapolis and western development, told local media in December 2015 that the government anticipates that the population will be around 8m by 2030. In an effort to prepare for this influx of new residents, the new ministry…