“Sri Lankan leaders should look into the interests of local investors before going global”

LOCAL DEVELOPERS URGE GOVERNMENT TO STREAMLINE APPROVALS, SUPPORT DOMESTIC INVESTORS, AND HARNESS DIASPORA DEMAND TO BOOST SRI LANKA'S REAL ESTATE MARKET.

- By Pranavesh Sivakumar

Sri Lanka's real estate and construction industry has for decades contributed to the nation's economy. From affordable housing to luxury apartments, local companies are trying to keep up to the demand and contribute to the country financially by attracting local and foreign buyers. However, with weak laws and red tape, seeking approvals for a project to get off ground has always been a painstaking task. With the Sri Lankan diaspora now showing interest in returning and investing in apartments or houses in Sri Lanka, the local industry is urging the government to expedite the local approval process. Below is an interview with Prime Land Group Chairman B. Premalal and Co-Chairperson Sandamani Perera, where they discussed the local challenges in building large scale properties. Below are the excerpts:

Mr. Premalal - We are now under the National People's Power (NPP) government. Your company has been in the market for a very long time. How do you look at the construction industry at this moment of time, especially for the locals?

Premalal: There are two things. One is the construction industry, and the other is within the construction industry. That is the real estate industry. We are into the real estate industry, but by doing real estate, it automatically is a construction. The construction industry, as for all, it's everything. It is houses, apartments, commercial space, and even roads and bridges.

Within that framework, the prices in the real estate construction and real estate industry, since the Covid-19 and Economic Crisis has risen drastically. This is also due to the high interest rates and exorbitant foreign exchange rate, especially the US dollar rate. But during the recovery period, prices stabilized. The rupee exchange rate came to a manageable sense.