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Monday June 3rd, 2024

Sri Lanka UDA properties draw interest from China, Japan, Korea investors

ECONOMYNEXT – Sri Lanka’s Urban Development Authority has received interest from investors in Japan, China and Korea for a portfolio of lands in key locations, Director of Real Estate Management and Development Anura Prasanna said.

“Most of them are Chinese investors. Then, we have Japanese, who invest in buildings like Visumpaya and also Koreans,” Prasanna told Economy Next.

The properties are valued at 21 billion rupees, but could result in investments and economic activity valued at multiples of the land.

“You have to multiply the land value by five times,” Prasanna said.

An unsolicited project proposal received by a Korean investor for a housing project alone was about 15 billion rupees.

The UDA has a range of properties including several with historic value.

“Some are bare lands, some are developed properties, like the Gafoor building in Pettah, the Galle Post Office, the Bogambara prison in Kandy, which are meant to be preserved for conservation purposes, but can also serve as valuable tourism properties,” Prasanna said.

Among projects under consideration is the Visumpaya building located in Union Place, a historic official residence which is earmarked for a high-end boutique hotel.

The project is estimated to value at 35 million dollars, for which a Japanese investor has expressed interest.

There had also been interest from investors in other countries, before an economic crisis hit the island.

“Last year we had some discussions with investors from Middle Eastern countries, especially Oman and Dubai,” Prasanna said. “While they initially showed interest, they were discouraged because of this economic crisis.”

Efforts are underway to re-kindle their interest.

The Housing Department of the UDA conducted an exhibition in Dubai last year, with the property portfolio of lands and houses that comes under its ownership.

“We’re planning to have two investment forums in Sri Lanka this year and most probably in India too, and the discussions will continue,” Prasanna said.

“So this year, in partnership with Dubai, Singapore, the Board of Investments and the Tourism Development Authority, we are in the process of planning forums. We are in the discussion stage now,” he said.

Among the projects is a high-rise building and a carpark in Chatham Street for which Expressions of Interest would be called.

The mixed development project is valued at 1,775 million rupees and will be on a 99-year lease.

“I think there may be a good demand for it,” Prasanna said.

From next week, for the Chalmers Granary, interested investors from Singapore are to be presented with different investment model packages.

“We are going for PPP or long term lease,” he said.

Under the initiative to finalize 22 development projects in 2024, is a Small and Medium Scale Industry Development Project at Millewawatta, Padukka with a 30 year lease and base value of 620 million rupees.

The UDA is calling RFPs for a land in Mayura Place, Wellawatta with a 99 year lease period, which is to become a residential development project with the base value of 232 million.

(Colombo/Jan12/2024)

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Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

Sri Lanka Navy assisting in rescue operations (Pic courtesy SL Navy)

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

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UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

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300 of 100,000 trees in Colombo considered high risk: state minister

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)

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