Construction & Real Estate
From The Report: Sri Lanka 2019
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While the construction sector witnessed substantial growth in the 24 months leading up to 2018, domestic market forces including a falling rupee, warnings of an asset bubble and political instability have stymied growth of late. However, despite market disruptions, a number of key projects forged ahead in 2018, including Port City Colombo and the Hambantota Industrial Zone. Impressive economic growth since 2009 has bolstered Sri Lanka’s property market. More employment opportunities, rising salaries and rapid rural-urban migration have all played a part in the expansion of housing and commercial properties. In recent years, increased investor appetite and a maturing economy have transformed Colombo into a dynamic modern city that still retains a sense of its past. This chapter contains an interview with Arun Pathak, Managing Director, WelcomHotels Lanka.

Articles from this Chapter

Overview

Poised for growth: Government infrastructure projects and private sector developments continue to advance the segment
OBG
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While the construction sector witnessed substantial growth in the 24 months leading up to 2018, domestic market forces including a falling rupee, warnings of an asset bubble and political instability have stymied growth of late. However, despite market disruptions, a number of key projects forged ahead in 2018, including Port City Colombo and the Hambantota Industrial Zone. While the landscape of Sri Lanka continues to be altered by new developments, the industry remains shackled by a cumbersome…

Analysis

Labour shortage: Contending with outward migration of young local talent
OBG
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Since the end of the three-decade-long armed conflict in 2009, the construction industry has benefitted from rapid economic development. Despite unprecedented development in high-end residential and commercial space, as well as hotel and resort construction, the sector continues to be hampered by worker migration, with many construction professionals and unskilled workers seeking employment in Middle Eastern countries. As a result, the majority of large-scale construction projects depend…

Interview

Shift in preferences: Arun Pathak, Managing Director, WelcomHotels Lanka, on vertical living and mixed-use developments
OBG
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Interview:Arun Pathak How can attitudes towards vertical living be changed, and to what extent can vertical projects address urbanisation-related challenges? ARUN PATHAK: One of the first things that needs to happen is for local communities to feel comfortable with the space, and look forward to all of the benefits associated with vertical projects. Pressure exists in Sri Lankan society, especially in Colombo, to adopt this new style of living, because the existing set-up is becoming more…

Overview

Qualified optimism: Key real estate developments hold the potential to reposition Sri Lanka as a regional business and financial hub
OBG
plus

Impressive economic growth since 2009 has bolstered Sri Lanka’s property market. More employment opportunities, rising salaries and rapid rural-urban migration have all played a part in the expansion of housing and commercial properties. In recent years, increased investor appetite and a maturing economy have transformed Colombo into a dynamic modern city that still retains a sense of its past. More recently, the government has been faced with a number of impediments to economic growth,…

Analysis

Window of opportunity: Foreign investment in the real estate sector to be bolstered by progressive legislative amendments
OBG
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In a bid to inject more foreign capital into the real estate sector and capital markets, amendments have been made to Land (Restrictions on Alienation) Act. Until this change was made, the transfer of title of any land to foreigners, overseas firms or Sri Lanka-incorporated companies with foreign shareholding of over 49% was prohibited by law. However, amendments passed in 2018 have enabled foreign entities listed on the Colombo Stock Exchange (CSE) to purchase freehold land in Sri Lanka.…