China, India and Hong Kong are the top three countries currently investing in the Sri Lankan real estate market, according to new research from online real estate platform, Lamudi Sri Lanka.
Lamudi Sri Lanka ranked the leading countries investing in Sri Lanka based on foreign direct investment (FDI), number of upcoming projects and buildings currently underway.
With increasing political support for international investments, Sri Lanka has become an attractive spot for real estate investors looking for opportunities in the South-Asian region.
The Sri Lankan government has been continuously promoting local investment opportunities for international investors.
Data from the Central Bank of Sri Lanka indicates that a growing percentage of foreign direct investments have been flowing in from nations such as China, India, Singapore, Netherlands, UK and the USA.
As of 2014, over 42 percent of investments were focused on infrastructure, of which nearly 50 percent were driven into housing, property development, shopping and office complexes.
Data from the Central Bank of Sri Lanka confirms China is the biggest contributor to Sri Lanka’s FDI with over US $ 400 million in investment in 2014.
Over the past five years, a large number of Sri Lanka’s infrastructure and real estate projects have been developed by China.
Transportation developments financed by Chinese investments include the expressways from Colombo to Katunayake, and other major cities like Galle and Matara.
In addition to luxury residential projects such as Avic Astoria, the long-awaited Colombo Port City, an impressive mixed development project, have been given the go-ahead by the new government. The project is slated to cost almost US $ 1.4 billion.
A growing number of private firms have shown interest in investing in Sri Lanka. From the ITC Colombo One in Galle Face and the Tata Housing project, to the Sandal Lands residential project, India is contributing a large amount to Sri Lanka’s total FDI.
Indian development firms have also planned to construct 65,000 houses in Sri Lanka to assist in the resettlement of the families affected during the civil conflict.
The nation’s leading brand, Shangri-La, has invested in Sri Lanka in two areas: Colombo and Hambantota. The project in Colombo is a luxury mixed-use development, consisting of commercial spaces, a mall and residential units, while the project in Hambantota is focused on tourism; the construction of a luxurious hotel will accommodate the growing number of tourists every month.
Countries including Pakistan and the USA have been increasingly investing in major projects in the commercial, residential and tourism industry. Projects include the Destiny and the Hyatt Regency Hotel.