The Sri Lankan government is to remove a one percent fee charged on the construction cost of buildings other than homes in an ef
fort to encourage investment, a spokesman said.Media minister Keheliya Rambukwella said the Cabinet of ministers at its weekly meeting decided to remove the charges imposed under Urban Development Act to help increase foreign and private investment.
"At present one percent of construction cost, other than for construction of houses, has to be paid to the Urban Development Authority," he told a news conference.
"With the intention of promoting investment, Cabinet approval was granted to do away with this one percent payment and repeal the relevant gazette."
A construction boom is anticipated in Sri
Lanka as economic growth accelerates after the end of the island's 30-year ethnic war in May 2009.Large infrastructure projects like ports, airports and power plants are being built or planned along with high-rise hotels and apartments, office blocks and shopping malls.
This was originally 3% & was intended to enable the government to build housing for the urban poor.
ReplyDeleteWe are a Hotel Operator looking into opening a hotel in Colombo city. Need to know the contruction cost per sq foot of a 4-star hotel?
ReplyDeleteMin of Rs 4,500.00 per sq ft for a 4-star hotel. It all depends on finishes.
ReplyDeleteIf you are interested in a 90% complete, city hotel/apartments let us know.
InvestSriLanka
Is the Rs 4,500 per sq ft including FF&E? I'd like to know average cost per room.
ReplyDeleteRs 4,500/= was only for the construction for upto 3-5 floors. That includes finishes like granite floors etc but not electrical and other fittings and fixtures.
ReplyDeleteStaff buildings would cost lower ---about Rs 3,000/= to 3,500/= per sq foot.
If you want finished cost including furniture, fittings and fixtures, Rs 10,000/= a sq ft is reasonable.
Thanks for the response.
ReplyDeleteIs there a big difference in costs in different parts of the country?
For example if the hotel was to be based in the
Cultural Triangle would the Rs 10,000/= per sq ft come down?
I'm looking to develop a small 4 star approx. 25 room hotel (most probably cabanas) in the Cultural Triangle. I need to estimate the total investment required.
Thanks for the help.
Can't be by much. Labour also not that different from place to place nowadays. Speaking of price convergence :)
ReplyDeleteFor cabana style construction, you should be able to drive the cost down due to the relative simplicity of the structure, but fittings and finishes will decide the final cost. Anyway, Rs 10,000 is a reasonable figure.
Hi. Do you have similar benchmarks for a hotel in the luxury segment in Colombo- in terms of the construction costs for a hotel on the scale of say, the proposed Shangri-la hotel? Would 10,000/sft be a reasonable estimate for just construction costs?
ReplyDeleteGlobally, a luxury hotel development would cost around $500,000 a key, depending on the facilities, design, etc as you mentioned.
Look forward to your response!