28 Oct 2025 - {{hitsCtrl.values.hits}}
Prime Land being the largest and the oldest real estate company in Sri Lanka, we have a very good response from the customers. Some of these customers have burnt their fingers previously with unknown developers. Now though, there are very few known developers and known brands.
Yes, this has increased in the last two years. We feel the market confidence when dealing with Sri Lankans and our expats overseas. We have been carrying out many promotions overseas. Once when we did the same promotions, they were uninterested citing Sri Lanka’s rating are all low. Now, the tide has changed to the extent interest has deviated from UK, Dubai, Australia to this island.
People having invested, have burnt their fingers and do not find progress. Only for an instance, look at the halfway built Krrish and Hyatt Regency, only to name a few. When you go around Colombo, there are many unfinished properties. Given these, surely one must be careful about the developer as well.
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:
Q: 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.
The current government has continued implementing important fiscal policies and as a result, inflation is very much under control. The exchange rate is favourable, and the rupee has appreciated.
Our foreign exchange reserves have increased as well. Coupled with market-friendly policies and interest rate reductions, there has been a significant increase in demand for residential units.
Now there is a demand for residential units. For example, we hardly have anything as a stock. Now, people will look at real estate as an investment and to live a life.
When it comes to apartments, the concentration on apartments in Sri Lanka is very less, compared to other countries.
Therefore, there is a huge opportunity to score. The bright side is, since the country is now stable there is renewed interest flowing from our expatriates. In fact, they are desiring to return to their homeland, at least during wintertime or for their retirement and even as an investment. There is also significant diaspora demand coming in, thereby foreign exchange would flow in.
Prime Land being the largest and the oldest real estate company in Sri Lanka, we have a very good response from the customers. Some of these customers have burnt their fingers previously with unknown developers. Now though, there are very few known developers and known brands.
Q: You said you were one of the oldest real estate companies. Have the demands of the people changed in any way where housing or apartment living is concerned?
Premalal: Yeah, now the trend is different. Earlier, some thought twice before venturing into an apartment. But now, it’s the opposite. People want to enter apartments, especially the youngsters and even others. They find it is very convenient. They find everything within their premises, the security and all the other things like gymnasium, swimming pool et al.
Q: You’re dealing with housing and apartments. Meaning, that requires a lot of land to continue your projects. Is this land freely available in this country? What are your challenges when acquiring land?
Premalal: Yes, anyway, our people are very much inclined to the land. When they only really need, they sell. Otherwise, they want to retain their land. We now have around six acres of prime properties in five strategic locations in the Colombo city, including Colombo 4, 5 and 7.
Perera: Our people always believe that the best investment is properties. From generations they own lands and properties. Unless there is a special reason to sell, they always keep it with them. Hence why, we face difficulties in acquiring land, because there are many abandoned properties. Therefore, it’s not easy to buy because land is scarce.
Q: We have had a failing economy over the years. Do you reckon our people have the buying power for these properties?
Premalal: There is a very big need for apartments, which we have not tapped. We have introduced many projects recently, all have been snapped up. For an instance, a project in Negombo, we have less than 10 units remaining of the 400 odd we have built.
Perera: Another project called Venezia, in Negombo, which has 480 units, there too, only a handful units are remaining. We are selling a basic requirement – shelter. There are practical issues of buying land, setting up a building and other execution issues. We, therefore, present apartment living as a complete package (convenience, security and all that). This is why the trend is trending towards apartment living.
Q: Where the diaspora is concerned, is there a demand from them to invest in properties/houses in Sri Lanka?
Perera: Yes, this has increased in the last two years. We feel the market confidence when dealing with Sri Lankans and our expats overseas. We have been carrying out many promotions overseas. Once when we did the same promotions, they were uninterested citing Sri Lanka’s rating are all low. Now, the tide has changed to the extent interest has deviated from UK, Dubai, Australia to this island.
Q: Why is the interest turning sides?
Perera: One thing is that they enjoy better returns here, than they invest there.
Premalal: The other reason is, they want to return. Since recovering from the Economic Crisis, the confidence has boosted. Retired Lankan expats like to spend some time yearly in Sri Lanka as well.
Q: You spoke about reverse migration. Is that also contributing to the cause?
Premalal: In recent years, Sri Lankan expats living in the U.S., UK, and Canada especially are very much interested in returning home. There is a big crowd who have acquired our units with Prime Land. Specially for high-end luxury units, we see much interest. All these customers so far have been expats. The next target should be foreigners. Our destination, cuisine, people, scenic – are all good. The only thing is that we have not marketed our country well.
Perera: All these people in the above listed countries including Australia did not return to their homeland even once after they left. Only the expats in the Middle East used to return. However, now, we are seeing that from U.S., UK, Canada, Aussie and even the European countries. They are keen in at least spending a few months in the year here.
Q: What is the support needed from the government, in terms of making the process practical and enticing, in attracting foreigners?
Premalal: The Urban Development Authority (UDA) has improved. Other institutions or departments remain sluggish and inefficient. These departments take months to release approvals. In that case, how can projects come about and be completed?
Perera: There are two ways to bring down foreign investors. One is getting them to do the developments here. Other is after we develop, we sell it to overseas clients and bring in the money. Most feasible and profitable way out is, selling the finished products to them.
Q: Have you had discussions with the govt in resolving these issues?
Premalal: Yes, these are all different organizations. One person does not hold control over all these. We are pushed from pillar to post, resulting in projects getting delayed. They will have to first look after the investors in Sri Lanka, promote them, encourage them, only then should they look at bringing in foreign investors.
Q: Are you dealing in real estate only locally, or have you gone globally, too?
Premalal: We are promoting our products in Dubai and Australia and that brings Foreign Exchange here as well.
Q: What is the difference you spot, between working with our authorities and overseas?
Perera: Dubai is amazing. Officials always take the responsibility. They do not pass the buck, unlike here.
Q: Where do you think the fault lies? Leaders, decisions makers or bureaucrats?
Premalal: All of them – decision makers don’t seem to be understanding the importance of this.
Q: There are a lot of abandoned properties within Colombo itself, any comments on that?
Premalal: Now, you said there is an increased interest in real estate. Investors looking to buy are going to be looking at numerous things. They’re also only looking at the development, not the developer. Because that is where your hard-earned money is going to be invested.
People having invested, have burnt their fingers and do not find progress. Only for an instance, look at the halfway built Krrish and Hyatt Regency, only to name a few. When you go around Colombo, there are many unfinished properties. Given these, surely one must be careful about the developer as well.
That is where Prime comes in, with our three decades of experience, faith and delivery. We deliver beyond our promise.
Q: Mr. Premalal, apart from the concerns you explained, is there any support your looking forward to from the government?
A: This approval process should be expedited. Rather than looking at foreign investors, look inwards, look at our own people. Sri Lanka is a design of Sri Lankan architects and designers. The government needs to heed and address their grievances, encourage them with the incentives and the needful would be delivered.
I’m happy to see that President Anura Kumara Dissanayake has recently announced to hand over the government lands to investors, call for expression of interest and projects can be launched. Classic instance, see the project of Shangri-La, 10 acres of land. See the impact – skyline of Colombo, economy, vibrance it’s yielding.
Q: With the budget around-the-corner, any expectation from the real estate end?
A: Perera: We are not looking forward to concession; we only want the leaders to expedite the process. A project is worth billions. The wait is painstakingly long. Therefore, when the project is dragged, simply calculate the interest cost. As Premalal explained during our stay, how much of employment, how much of Tax (direct and indirect). This red tape should be reduced and gradually eliminated.
Now, Dubai has started using the golden visa. Our government can easily introduce such schemes.
Q: How many projects is Prime dealing with right now and how does the future look for you?
Premalal: Prime Land comprises of residences and land. These days we are building over 3,500 apartments and houses. We are introducing new concepts namely Yolo (You Only Live Once), Viva La Vida and such things.
Going forward we have properties in the making in five strategic locations of Colombo. In Colombo 4, we have just acquired a land where we are looking at putting up a 70-storey super luxury apartments. Around 80-90 percent of the apartments would be overlooking the sea. In Colombo 07 also a property will come up very soon.
In the outstation, one scenic property is rising in Nuwara Eliya.
Perera: We have a long list of properties. We have also enabled accessibility. Meaning affordable living.
03 Jun 2026 03 Jun 2026
03 Jun 2026 03 Jun 2026
03 Jun 2026 03 Jun 2026
03 Jun 2026 03 Jun 2026
03 Jun 2026 03 Jun 2026
