IMF predicts 5% GDP growth & other investment factors

Unlike in other countries where foreign nationals are generally confined to leasehold properties for a maximum of 99 years, Sri Lanka offers a distinctive benefit by allowing them to acquire condominium properties as freehold properties.

With its diverse geographical landscape, Sri Lanka is an attractive destination for real estate investment.

The country offers stable and enjoyable weather, an affordable cost of living, and the welcoming nature of its amiable people, along with reliable air transportation, making it an ideal location for living and holidays.

Investment highlights:

The IMF predicts the Sri Lankan economy will be growing by 5% in 2027.

The Port City special enterprise zone www.portcitycolombo.lk will have significant impact on the economy becoming the leading residential, retail, and business hub in South Asia.

Sri Lanka Tourism Development Authority (SLTDA): prior to 2019, the Southern Coast around Galle maintained a steady hotel occupancy rate of over 70%.

Buyers are more inclined to invest in units affiliated with reputable brands like Kristall Spaces, as they offer superior build quality, services and potential rental income, thus facilitating the sale of the units.

Beachfront real estate prices have risen by over 80% in some prime beachfront locations over the past 5 years.

In the next 5 years, we expect an apartment costing USD285,755 to increase in value to 460,211 based on 10% capital growth per annum – that is USD174,456 increase or over 60% in 5 years.

Maintenance services charges may vary from $0.15 to $0.25 per square foot but USD 115 per month for a 1-bedroom unit can be expected in prime locations.

According to the latest report from Forbes magazine, Sri Lanka has been identified as the fourth top choice for solo travelers in 2024, overtaking countries such as Jordan, Thailand, and Indonesia.

Despite enduring significant setbacks during the Covid pandemic of 2020 and 2021, as well as political unrest and economic challenges in 2022, Sri Lanka’s tourism sector has demonstrated remarkable resilience, experiencing a swift resurgence.

Strategic importance of Sri Lanka: the Indian Ocean serves as a maritime trading corridor and is a significant source of maritime economic resources with nearly two thirds of the world’s oil being transported through here.

Consequently, the area has become crucial for the energy, food and national security of many nations making Sri Lanka’s location important.

As interest rates fall, more investors will explore alternative investment avenues, with a particular focus on real estate and this will drive up the demand for luxury properties in the near future.

Sri Lanka: new Investor Visa for property buyers

This new initiative for buyers outside Sri Lanka interested in buying condominium units (holiday apartments) started on 1 June 2024.

The Investor Visa program ensures a simplified and efficient procedure for non-Sri Lankans looking to invest in the country’s fast-growing real estate market allowing visa applications to be handled entirely online, making it easier for potential investors.

A notable feature of the new process is that foreigners staying in Sri Lanka will no longer have to exit the country to apply for a visa.

This notable improvement is expected to draw in additional investors to support Sri Lanka’s economic progress and flourishing construction and property development industry.

Applicants must provide:

1. Confirmation from a bank regarding the deposit of foreign currency into an IIA account.

2. A statement from the investor specifying the purpose of the investment, whether to purchase a unit or units from a condominium development project in the country.

For investments exceeding USD 100,000, applicants will receive an immediate 5-year visa, which can be renewed.

Investments over USD 200,000 will be eligible for a 10-year renewable visa, both necessitating a maximum of five days for ministerial approval.

By opening its doors wider to international investors, Sri Lanka is not only improving its economic prospects but also laying the foundation for sustainable growth in its property development sector.

In addition to the direct and obvious benefits mentioned earlier, foreign investments in real estate have been proven to generate multiple streams of both short and long-term inflows.

The nature of investing in Real Estate is characterized by long-term commitments and substantial investments, which in turn contribute to the country’s overall development.

Galle plans for tourism hub

The Ministry of Ports, Shipping, and Aviation announced on Thursday its ambitious plans to transform the Port of Galle into a bustling tourist destination.

Minister Nimal Siripala de Silva is spearheading the proposal, which aims to enhance the port’s infrastructure and address environmental and wildlife conservation concerns.

The proposed construction includes the establishment of two backwaters, one measuring 850m and the other 150m.

Additionally, the harbor basin will be dredged to a depth of 12.05m, and a new passenger terminal will be built.

During the meeting, it was recommended that the Wildlife Department submit an Environmental Impact Assessment Report within a week to address environmental issues and support the development project at the Port of Galle.

Furthermore, Minister Pavithra Wanniarachchi instructed the Sri Lanka Ports Authority (SLPA) officials to solicit Requests of Interest from local and foreign investors interested in participating in the development initiative based on the aforementioned report.

The Ministry has stressed that SLPA will allocate a total of USD 200 million for the development project at the Port of Galle.

Tourism: another record month in February

Sri Lanka’s tourism industry saw record growth in February 2024, with 218,350 tourist arrivals that month and this marks the third straight month surpassing 200,000 visitors, according to the the Minister of Tourism, Harin Fernando.

This February figure signifies over a 100% increase from February 2023 when only 107,639 tourists arrived.

It is also the highest monthly total since January 2020 pre-pandemic when 228,434 visitors came.

“We’ve had an amazing start to 2024, with the second consecutive month above 200,000 arrivals – the highest ever totals since I took office,” Harin Fernando said.

In just the first two months of 2024, Sri Lanka welcomed 426,603 tourists, already 28% of 2023’s full-year total.

Fernando also estimated tourism income has surpassed $710 million so far in 2024.

Source article https://www.newswire.lk/2024/03/02/sri-lanka-tourism-february-tourist-arrival-numbers-released/

Record Indian tourist arrivals

To significantly boost tourist arrivals from India, Sri Lanka Tourism has launched an ambitious global campaign in Mumbai.

The strategic initiative featured the participation of high-profile delegates, including Sri Lanka’s Tourism Minister.

Currently, over 20% of tourists in Sri Lanka are Indian, so the campaign aims to attract 10% of the 50 million Indians who travel overseas every year.

Sri Lanka hopes to entice tourists with its rich cultural heritage, stunning natural landscapes, and the renowned hospitality of its people, as highlighted by Dr. Velson Vethody, the Sri Lankan Consul General in Mumbai.

Additionally, Sri Lanka seeks to expand its tourism portfolio by promoting meetings, incentives, conferences, and exhibitions (MICE) tourism, recognizing the sector’s huge potential.

Underscoring this goal, Thisum Jayasuriya, Chairman of the Sri Lanka Convention Bureau, showcased prospective MICE venues across the country while announcing plans to develop new sites and hotels for the anticipated tourist influx.

In a novel move to attract more Indian visitors, Sri Lanka is developing a Ramayana Trail that honors the two countries’ shared cultural and mythological bonds. Along with the Sri Lanka Institute of Information Technology extending scholarships to Indian students, this initiative demonstrates a multifaceted approach to strengthening bilateral ties through tourism and education.

The surge in Sri Lankan tourism is evident from the unprecedented 106% year-on-year increase in arrivals, with around 9,000 daily visitors. SriLankan Airlines, operating 95 flights connecting nine Indian cities to Sri Lanka, including two daily Mumbai-Colombo flights, plays a pivotal role by strengthening air connectivity.

Expressing gratitude for India’s steadfast support, Tourism Minister Harin Fernando emphasized the two countries’ long-standing relationship. While aiming to boost tourist numbers, the campaign also seeks to enhance cultural exchange and economic ties, underscoring Sri Lanka’s commitment to becoming a top destination for Indian travelers seeking enriching experiences.

Source article  https://www.travelandtourworld.com/news/article/sri-lanka-tourism-sees-record-indian-tourists-arrivals/

Plan to attract 2.5 million tourists in 2024

While on a tour of tourist destinations along Sri Lanka’s south coast, President Ranil Wickremesinghe engaged with local business owners, foreign visitors, and domestic tourists to gather feedback on the government’s initiatives to revitalize the tourism industry and attract high-spending travelers.

Through these conversations in Galle, Unawatuna, Tangalle, and other locations, the President assessed firsthand how infrastructure upgrades and innovative promotion campaigns have impacted tourism operations.

He also solicited ideas from stakeholders on further enhancing facilities and marketing strategies to build on the sector’s post-pandemic recovery momentum.

By actively listening to perspectives from across the tourism landscape, President Wickremesinghe aimed to shape policies that will help Sri Lanka surpass its pre-Covid visitor numbers and realize the goal of attracting 2.5 million tourists annually by 2024.

Source article  https://colombogazette.com/2024/02/17/president-holds-talks-with-tourists-in-galle-and-unawatuna/

Cathay Pacific flights & Sri Lanka tourist arrivals up 100%

After suspending passenger flights for several years, Cathay Pacific, Hong Kong’s largest carrier with its headquarters and main hub at Hong Kong International Airport, has resumed flights to Sri Lanka.

Operating an Airbus A330-300 aircraft, the airline will fly to Sri Lanka three times a week on Tuesdays, Thursdays, and Saturdays according to its new schedule. Cathay Pacific has served the Sri Lankan market for over 30 years, making it one of the most important airlines contributing to Sri Lanka’s tourism sector.

The airline had temporarily halted operations in March 2020 due to the global pandemic but operated Boeing 747 freighters during that time, transporting vital supplies like COVID-19 vaccines.

The newly resumed flight carried 253 passengers who were impressed by the warm, colorful welcome and cultural dancing performance organized by Sri Lanka Tourism at the airport.

This resumption marks an important moment, as Cathay Pacific, which currently flies to around 80 destinations worldwide, will be an asset to Sri Lanka’s tourism sector by bringing more visitors and promoting the country as a top travel destination.

The operation will especially help attract passengers from Far East countries like China and Hong Kong.

Article here https://www.newswire.lk/2024/02/02/cathay-pacific-resumes-flights-to-sri-lanka-after-several-years/

At the same time, analysis of tourist arrvials to Sri Lanka were up 100% in January 2024.

Sri Lanka is confident of reaching a 2.3 million target in 2024.

Sri Lanka received 302,884 tourists from India in 2023, which is Sri Lanka’s largest market.

Source to be verified.

 

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