Exchange relaxation to boost apartment sales

17 June 2013 03:05 am - 1 - {{hitsCtrl.values.hits}}

A A A

Leading property developers welcomed last week’s exchange controls relaxations by the Central Bank, which permitted the repatriation of capital and capital gains from the sale of residential properties by non- residents.

“This is one of the issues which restricted foreigners buying Sri Lankan apartments. We have been asking to liberalize this area as we believed that investors should have the liberty to buy and sell property at their discretion similar to any other investment,” said the CEO at Overseas Realty Ceylon PLC, Pravir Samarasinghe.

The relaxed rules are expected to boost apartment sales as they will now provide a clear pathway for foreigners to buy as well as invest in apartments, according to another leading property developer.

“The relaxed exchange controls will now provide hassle-free and streamlined ways for foreigners to buy apartments. Apart from that, this will also open up the market for the overseas investors to invest in our condominiums with the option of reselling at a later date,” said the head of Marketing and Sales at Imperial Builders Private Limited, Dilshan Kodituwakku.

Last week the Central Bank relaxed exchange controls relating to condominium industry amid other reforms as a measure of encouraging investments in immovable property, provided the property had originally been acquired and/or developed by such owner through funds remitted into Sri Lanka through international banking channels.

Prior to this reform, it had been a nightmare for a foreigner to take his money out of the system once it was invested in Sri Lankan apartments. Although the investor could repatriate the capital (sales proceeds) at once, the repatriation of the capital gain could only be done on a staggered basis at a maximum of US $ 20,000 per annum over a period of time.

Elaborating further on the new opportunity created, Kodituwakku said Sri Lankan apartments would now offer an attractive investment opportunity for foreign investors especially in the likes of Japanese who can now easily park their near zero cost money with very little risk.

“This policy effective since June 12, 2013 will positively impact the condominium market in Sri Lanka, enabling a transparent gateway for overseas investors. This relaxation of policy by the government of Sri Lanka is timely and is set to drive the demand for property higher,” he added.

Based on a 2013 budget announcement, a letter has reportedly been sent by the Treasury to the Commissioner General of Lands directing him not to registrar land deed transfers including condominiums of foreigners with effect from January 1 in a bid to prohibit sale of state land to foreigners. However the necessary legislations are yet to be drafted.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 1

periya dorai Thursday, 27 June 2013 09:07 AM

Now that this has been given all the publicity lets see how it works in practice. has all the legislation been done if not when will it be done so that it is clear to the investor he could invest in sri lanka and take his profits out without the unnecessary hassles given till now.
OVER TO THE MINISTRY CONCERNED

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Exchange relaxation to boost apartment sales

Comments - 1

Add comment

RECOMMENDED

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Western purple-faced langurs see blue!

Most Viewed in News

Former MP Palitha Thewarapperuma dies from electrocution

A US “Kaputa”, a Lankan “Nariya” and a Presidential “Feast”

23 year old youth ends up having his testicles removed

April 15 declared a government holiday

Complaint lodged over Piumi Hansamali's possession of Gota’s Range Rover

Street food vendor arrested for verbally harassing foreigner

MIRROR CRICKET

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

Mendis, Mathews move up in ICC Test Rankings

Chamodi, Dewmi spins Sri Lanka U19 Women to big win

TODAY'S HEADLINES

Debt Restructuring Talks: Bondholders Fear Regime Change Impact

Emirates halts check-in for connections, UL cancels flights to Dubai

Wild elephants pull down 16 telephone poles

Middleman arrested for price gouging at Kalutara eatery

Hardik fined Rs 12 lakh for violating IPL code of conduct after win over Punjab Kings

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

Mendis, Mathews move up in ICC Test Rankings