Lanka Real Estate Investment Trust

07/10/2021

REITs regulation in Sri Lanka

The Budget Speech for the year 2016, read in the Parliament in November 2015 included a proposal to introduce listed REITs to provide capital to real estate and infrastructure development. It was also mentioned that transfer of real estate assets to a REITs structure that distributes 90% or more of the income to REIT unit holders will be exempted from stamp duty.

The Budget Proposals 2017 which were read in Parliament on 10 November 2016 also included a reference to REITs where it was stated that support would be extended to the Securities and Exchange Commission (SEC) of Sri Lanka to introduce amendments to the unit trust code.

Almost three years and eight months thereon the SEC of Sri Lanka has introduced a regulatory framework for SL-REIT by way of the Gazette notification dated the 31 July 2020 (No.2186/29). The Gazette is issued in terms of Sections 53 and 13 of the SEC of Sri Lanka Act, No. 36 of 1987 and amendments thereto and seeks to extend the Unit Trust Code to accommodate SL-REIT.

https://cdn.cse.lk/pdf/SEC-REIT-Brochure.pdf

06/05/2020

Here is an update on COVID-19 Impact on Real Estate Market in Sri Lanka prepared by KPMG. My take on the Sri Lankan real estate market is two fold.

1. The COVID 19 impact must be brought under control not for the sake of real estate but its an emergency situation around the world and in Sri Lanka where the lives of Sri Lankans are at stake.

2. Even if COVID 19 is contained in Sri Lanka, the earliest Sri Lankans could go to the polls to select their new cabinet will be the most prudent answer to boosting investor confidence in the Sri Lankan real estate market.

Lets work for the best.

23/04/2020

“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”

Franklin D. Roosevelt

I am ready. Are you?

12/04/2020

Happy Easter to all our clients and friends. Stay Safe.

23/02/2020

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28/11/2019

The future of Sri Lanka’s economic development could very likely hinge on how domestic policies towards real estate evolve. On November 27th, Sri Lanka's new Prime Minister/ Finance Minister announced a tax cutting bonanza which will be a boost to the real estate market and has also taken the Sri Lankan stock market on a rally. Despite the bullish sentiment sparked by sweeping new tax cuts, they are certain to increase the budget deficit and complicate matters with regards to Sri Lanka’s agreements with the IMF. If there is a will to cut taxes, there must be a way to balance the books. Lets be cautiously optimistic.

Nov 27, 2019 (LBO) – Sri Lanka's new Cabinet of Ministers has given its approval to reduce Value Added Tax (VAT) and various other taxes, Co-Cabinet Spokesperson Minister Bandula Gunawardana said. “Required amendments and gazette notifications are currently being prepared,” Gunawardana told re...

28/11/2019

Why Colombo will be the next big city?
Wouldn’t you want to be a part of that?

The future of Sri Lanka’s economic development could very likely hinge on how domestic policies towards real estate evolve, particularly with respect to supp...