Sri Lanka Land and Luxury Property Investment

Sri Lanka seeks developers for prime property – Sri Lanka is searching for a buyer for a block of prime beach front land adjacent to two that are slated to be among the largest real-estate cum hotel developments to start in the country after the end of a 30-year war, officials said.

“The land is still available,” deputy economic development minister Lakshman Abeywardene said.

Sri Lanka sold 10 acres of land to Hong Kong based Shangri La for 125 million US dollars in the ‘Galle Face’ beach front, shifting military installations that occupied the land. Another 10 acres of land were given to CATIC, a Chinese defence contractor, for 136.5 million dollars, Abeywardene said.

The two investors are expected to build 500 million dollar mixed hotel, shopping and apartment complexes.
The developments have to be completed within 42 months, Abeywardene said. Treasury secretary P B Jayasundera said earlier in the week that the 4-acre block of land was available at a valuation of 13.6 million US dollars an acre. Sri Lanka’s tourist arrivals surged 40 percent in 2010, with similar trends this year.

Abeywardene said nearly 500 acres of state land were also available for hotel developments at Kuchchaveli in northeastern Sri Lanka at a valuation of 20 million rupees an acre.

Out of a total of 510 acres only two ten acre blocks have so far been sold for 20 million rupees an acre.

He says the developers are expected to spend about 2.5 percent to 5.0 percent for community development.
Sri Lanka’s north east was in the midst of a 30-year war till 2009.

In northwestern Sri Lanka off Kalpitiya out of a cluster of 14 islets, 12 were offered for tourism developments.

Two have been taken by investors for development and 10 others were available, Abeywardene said.
Two islets used by fishermen will not be used for hotels, he said.

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