Business
Introducing REITs in Sri Lanka: ‘An opportunity to benefit from real estate investment’
The Colombo Stock Exchange (CSE) and the Securities and Exchange Commission of Sri Lanka (SEC) announce the launch of Real Estate Investment Trusts (REITs) which now give average investors an opportunity to reap the benefits of real estate investment and the advantages associated with investing in publicly traded securities on the CSE. While investing in real estate appears to be a popular choice, the rising cost of property poses a significant challenge to individual investors who typically resort to bank loans to finance such investments. This timely introduction by the CSE and SEC provides greater access to all investor segments to commercial real estate projects and an opportunity to benefit from the recently observed spiraling property prices.
REITs were first introduced in the United States in 1960 creating a mechanism for individual investors’, especially middle-income earners, to generate income through investing in large commercial real estate. This product has made rapid progress within the Asian markets as well with its growing popularity especially in Thailand, Malaysia and India and is also viewed as a mechanism to broad base the real estate ownership within a country. A REIT is essentially a structure which typically owns and operates income-generating real estate. The income-generating real estate assets owned by a REIT may include office buildings, shopping malls, apartments, hotels, resorts, self-storage facilities and warehouses.
A REIT would enable unit holders to earn a portion of the income that is generated through renting, leasing or selling these properties which is required to be distributed directly to the unit holders of the REIT. The CSE and SEC have introduced a framework which mandates the distribution of 90% of the generated income to its investors.
This innovative introduction, which has been formulated specifically taking into consideration the local environment, would open up new horizons for real estate developers and owners to convert completed income generating projects into a REIT, have its units listed on the CSE following the mechanism now made available to them and have them publicly traded in the secondary market, similar to equity securities listed on the CSE.
The framework for REITs has been introduced by the SEC via rules made by the SEC in terms of section 53 and 13 of the SEC Act which came into effect from July 31, 2020 in the form of a gazette notification. The comprehensive formation of SEC rules will govern the overall mechanism of REITs in Sri Lanka. The CSE has also formulated listing rules for the listing of units of REITs. A REIT would enable investors to further diversify their portfolios by investing in this lucrative investment vehicle which would produce long-term returns. Investors would benefit from a stable stream of income, swift entry and exit route through the secondary market and also benefit from the returns of the overall real estate asset appreciation.
The economy at large would also benefit from the introduction of REITs with the anticipated creation of jobs, economic growth, increased tax revenues, liquidity through listing and would also attract foreign direct investments into the country. REITs would also require stronger corporate governance and increased transparency which would help the investor community and regulatory bodies to assess the viability and quality of projects.
Similar to any stock market investment, the investor is required to take into account his/her own financial status and also consult with an investment advisor prior to making an investment decision. A review can also be carried out on the REIT’s disclosure filings, including the annual and quarterly reports, prior to making a decision to invest in REITs.
The CSE and SEC will continue to focus on setting up a more conducive environment along with the regulatory authorities to facilitate greater company and investor participation.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
