The Sri Lankan economy is poised for unprecedented expansion, fired up by key industries that have been witnessing explosive growth spurts in recent years. In particular, luxury tourism and the premium property market are tipped to further intensify economic activities in the South Asian nation.
“Sri Lanka is experiencing a surge in real estate investment following a steady period of impressive economic growth over the past decade,” Property Funds World reported in a new research note, adding billions of dollars in fresh investments will pour in to the country over the next few years.
It is the real estate sector that will serve as Sri Lanka’s main growth engine, the report declared, citing the string of monster development projects that the country will soon undertake. The Port City reclamation works near the capital Colombo, for instance, will see the addition of 5.65 million square metres of premium land spaces that have been earmarked for mix-use purposes.
Dubbed as the International Financial Centre, the envisioned business hub will make available premium housing, office and commercial spaces that are seen to draw in further investment, specifically coming from the private sector, local and foreigners alike.
The Port City alone when it becomes fully operational is forecasted “to reposition the importance of Colombo … and indeed Sri Lanka as a key regional business and financial hub,” the report declared.
Operating on this rosy prospect, the report indicated that the general Sri Lankan property makes for a prime piece of real estate since “the market is at the beginning of its growth curve.”
Tourism Drives Mega Infrastructure Projects
Buoyed by the steady prospect of high volume tourist arrivals in the coming years, the Sri Lankan government has unveiled ambitious plans to enhance the country’s existing infrastructure that will see the rise not only of the expansive Port City, also tipped as the New Colombo, but also of other real estate expansions. With the blueprints already finalised, the Megapolis and the Beira Lake development projects have been advertised to increase Sri Lankan property space and at the same time make it more valuable.
Also in the cards are the improvements of the country’s transport networks – the motorway, railway and airport – that will make it easy for visitors to fly in and move around the country.
The plan is to create economic opportunities beyond Colombo and encourage developments outside of the city, which in fact is already underway. In Galle, south of the country, high-end property developments have been ongoing and will see completion soon.
The Le Grand Galle, described by its developers as a 5-Star boutique hotel, will open its doors this October while The Plantation Luxury Villas will soon commence operations. The latter is a hilltop premium property that will boast of inspirational and modern living while maintaining connection with the natural surroundings.
Both projects take advantage of their proximity to the breath-taking Indian Ocean and the historic Galle Fort, which is listed as part of the UNESCO world heritage site.
Booming Sri Lanka
Going by the indicators, the Sri Lankan economy is booming with the GDP growth path on a solid standing, last pegged by world economist at 4.5 percent. The country, according to Property Funds World, is moving forward thanks to “a vibrant democracy, political stability, a transparent and robust legal system, freedom for foreigners to invest, a transparent regulatory regime for free capital movements, a relatively benign tax environment, a peaceful South Asian region and an economy getting into a sustained growth.”
It helps that the capital Colombo is regarded with strategic importance in the global business setting because its location makes for easy access when doing commerce with the rest of the world. “Colombo, (with) strong air connectivity and popularity for tourists … is one of the region’s fastest-growing commercial hubs,” the report said.