Construction & Real Estate
From The Report: Sri Lanka 2017
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Across the island, a wide-ranging infrastructure development campaign is unrolling to expand Sri Lanka’s production capacity, efficiency and productivity, with the added aim of reducing regional disparity. Building and infrastructure projects are expected to strengthen the country’s economy, with the ultimate aim of achieving high-income, sustainable economic growth for all Sri Lankans. Various programmes are set to span the entire spectrum of infrastructure assets, encompassing transport, housing and urban development, hospitals, water supply and sanitation, and industrial areas including warehouses and logistic centres. Although Colombo’s high-end luxury property such as hotels, condos and retail outlets comprise the main draw, other areas – such as Galle and Colombo’s suburbs – are also receiving increased attention and investment from both foreign and domestic sources, as well as from expats looking to return home after the cessation of a decades-long civil conflict in 2009.

This chapter contains interviews with Patali Champika Ranawaka, Minister of Megapolis and Western Development; Susantha Ratnayake, Chairman, John Keells; and Wong Heang Fine, Group CEO, Surbana Jurong.

Articles from this Chapter

Overview

Accelerating growth: Major new projects are piquing investor interest
OBG
plus

Across the island, a wide-ranging infrastructure development campaign is unrolling to expand Sri Lanka’s production capacity, efficiency and productivity, with the added aim of reducing regional disparity. Building and infrastructure projects are expected to strengthen the country’s economy, with the ultimate aim of achieving high-income, sustainable economic growth for all Sri Lankans. Various programmes are set to span the entire spectrum of infrastructure assets, encompassing transport,…

Overview

Accelerating growth: Major new projects are piquing investor interest
OBG
plus

Across the island, a wide-ranging infrastructure development campaign is unrolling to expand Sri Lanka’s production capacity, efficiency and productivity, with the added aim of reducing regional disparity. Building and infrastructure projects are expected to strengthen the country’s economy, with the ultimate aim of achieving high-income, sustainable economic growth for all Sri Lankans. Various programmes are set to span the entire spectrum of infrastructure assets, encompassing transport,…

Analysis

Material world: Ensuring domestic material supply for future construction
OBG
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A surge in construction activities is in the process of transforming the island’s economy and skylines. However, it will be more likely to achieve sustained success if it is backed up by a ready supply of quality, low-cost, and domestically produced materials. Upsets & Comebacks The construction and building materials sector on the Colombo bourse is expected to provide a 46% average return – or an annualised return of 29% – into the first half of 2018, according to a 2016 First…

Interview

Moving on up: Patali Champika Ranawaka, Minister of Megapolis and Western Development, on improving public transport links
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Interview: Patali Champika Ranawaka Which Megapolis project initiatives does the ministry regard as high priority? PATALI CHAMPIKA RANAWAKA: The Western Region Megapolis project, as you know, is Sri Lanka’s grand strategy for growing into a high-income country – an economic development goal that we want to achieve while ensuring environmental sustainability, social equity in the distribution of development dividends and the happiness of individual citizens. With this broad vision as the foundation,…

Interview

Supply and demand: Susantha Ratnayake, Chairman, John Keells, on addressing the needs of the property market
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Interview: Susantha Ratnayake What is the pace of development in the middle and upper segments of the residential property market, and does this need to be adjusted? SUSANTHA RATNAYAKE: The residential development market has seen tremendous growth over the last few years. The demand for housing is approximately 100,000 units per year, while the demand for condominium developments in the upper and mid-market in Colombo and the Greater Colombo region is around 1500 units per year. An estimated 40%…

Overview

Great expectations: High growth rates attract foreign and domestic investors
OBG
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Referred to by one industry stakeholder as one of the most promising in Asia, Sri Lanka’s real estate sector is experiencing unprecedented levels of growth. Although Colombo’s high-end luxury property such as hotels, condos and retail outlets comprise the main draw, other areas – such as Galle and Colombo’s suburbs – are also receiving increased attention and investment from both foreign and domestic sources, as well as from expats looking to return home after the cessation of a…

Interview

Smart cities: Wong Heang Fine, Group CEO, Surbana Jurong, on urban renewal and planning for the future
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Interview: Wong Heang Fine How can policymakers work to ensure the population base is spread across the city and not just the central business district? WONG HEANG FINE: Cities cannot be cost competitive if there is no balance. In other words, first there needs to be jobs, and then you have to build the housing to support these jobs. You don’t build them 20 km down the road and expect people to travel. The modern city needs an integrated concept to accommodate the needs of industry, workers and…

Analysis

Making the grade: Developers are meeting demand for high-end office space
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In recent years Sri Lanka’s real estate market has experienced intensifying demand for grade-A office and commercial space from both domestic and foreign establishments. Such space is scarce in the capital and almost non-existent outside Colombo. Although several projects expected to supply a large amount of premium commercial space are in the construction pipeline, most will not open their doors for months or years. The lack of supply is exacerbated by an environment in which grade-A space…

Analysis

A place to stay: New hotel openings are set to boost tourism numbers
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A thriving tourism sector is feeding expansion in Sri Lanka’s real estate industry and the pace is not expected to slow in the near term. Indeed, the government’s tourism strategy aims to make Sri Lanka Asia’s most sought-after destination, and a wide array of new hotels will be needed to accommodate the increase in visitors expected to the island. This development is underpinned by current and planned infrastructure, which is expected to open up new activities and destinations for…