Sri Lanka Offers Land for Hotels at Government Estimated Price and Scraps Earlier Price of Rs 20mn an Acre. Attracts Projects worth $ 573mn

11th May 2011, www.dailynews.lk, By Indunil HEWAGE

Sri Lankan tourism industry shows signs of being one of the major industries with the influx of mega hotel projects worth US $ 573 million investments and the investor-friendly policies adopted by the Government.

Economic Development Deputy Minister Lakshman Yapa Abeywardena said all hindrances that have ruined investors’ interest in investing in the tourism related activities have been removed now.

“In future, preferred and eligible investors in the tourism industry will be able to purchase land for tourism related projects at a government estimated price,” he said.

Prior to this, many investors were reluctant to invest in the tourism sector due to increased basic expenditure of a project. Earlier, investors willing to invest in the tourism industry had to pay Rs 20 million on an acre.

Having considered the hindrances faced by investors, the Cabinet has granted approval to hand over land to investors in the tourism sector at a Government estimated price.

The tourism industry is flooded with a number of industry related projects.

According to Sri Lanka Tourism figures, 99 tourism projects have been received.

Out of the 99 projects, 78 projects have been inspected. Final approval has been given to 12 projects and four projects have been rejected. Twenty one projects are also to be inspected.

The Government is optimistic that if approval is received for the remaining 95 projects, 5,938 hotel rooms can be added this year.

Out of 99 projects, over 46 projects have been submitted by local companies and 12 local projects have been approved. Under the final approved 12 projects, 625 rooms are expected to be added.

Image: Economic Development Deputy Minister Lakshman Yapa Abeywardena and Sri Lanka Tourism Promotion Bureau acting Managing Director Malraj B Kiriella at the media briefing. Picture by Thushara Fernando.

Related Info :

• Land for Lease in North & East Sri Lanka for Rs20mn an Acre for Tourism Development

• Tourism Development in Northwest Sri Lanka Attracts Investments. Construction Work of a Hotel in Kuchchaveli Underway

Demand Drives Sri Lanka Land Prices to New Highs. Rs8mn for 25sq metres in Some Areas

21st April 2011, www.dailynews.lk, By Indunil Hewage

The local real estate market is showing significant growth in the recent past attributable to increasing sales and customer demand for lands.

The growth is expected to continue in the years to come. The land prices are picking up considerably in the face of present outlook in the industry.

Prime Lands Chairman Premalal Brahmmanage said land prices need to be within the reach of people and should not be overpriced.

Commenting on the big land allocation for mega projects in the Colombo city limit, he said there are a few big land blocks in the Colombo city limits and allocation of these lands would not have a huge impact on prices and sale of lands used for domestic housing market activities in Colombo.

“However, when lands are allocated for commercial purposes in the city, it will have some sort of impact on land prices.

In addition, the government has taken a timely decision to regulate and streamline the selling of paddy and coconut cultivated lands for various purposes in an uncontrollable manner by giving a proper value to good lands in the respective areas,” Brahmmanage said.

Lanka Lands Operations Manager Lalith Chandana said land prices in Pasikudah, Nilaveli, Kalpitiya, Dambulla, Anuradhapura and Hambantota have seen a marked increase comparison to the last couple of years and the growth is attributable to drastic expansion in tourism and construction sectors.

According to Chandana a perch of land in Kalpitiya, Colombo 7, Kollupitiya, Gampaha, Hambantota are being sold at a price of over Rs 4.5 million, Rs 8 million, Rs 6 million, Rs 250,000 and Rs 100,000 respectively.

Sri Lanka's UDA to Issue Rs 5bn Debentures to Develop Colombo Land

12th August 2010, www.island.lk, By Zacki Jabbar

Media Minister Keheliya Rambukwalle addressing yesterday’s cabinet press briefing in Colombo said that the cabinet of ministers on a proposal by the Defence Ministry had approved the issue of the debentures by the UDA.

Acccording to a survey conducted, 66,000 low income families were occupying valuable land in Colombo and its environs in a very "haphazard" manner, he said.

Rambukwalle said that the Urban Development Authority has formulated a project proposal to develop valuable lands in Colombo in stages and it has become necessary to relocate unauthorized settlements.

The project, once fully implemented, would especially benefit low income families, he claimed.

Rambukwalle said that the Cabinet also approved another Memorandum by President Mahinda Rajapaksa in his capacity as Highways Minister, to construct a Highway Secretariat at Denzil Kobbekaduwa Mawatha, Battaramulla, with Asian Development Bank assistance.

The entire cost of the project will be Rs. 132 million, he said.