Published on 04 April 2006 at 05:37 pm
Filed in Property News for Sri Lanka » Property Investment Confidence in Sri Lanka
A number of factors have seen property investor confidence in Sri Lanka significantly boosted in recent days.
On the one hand investor confidence returned to the country following the ruling party’s landslide election win last week, and on the other hand recent announcements and initiatives undertaken by the government to boost the Sri Lankan economy have seen international property investors increasingly turning their attentions to the emerging Sri Lankan real estate market.
Following the ruling party’s victory in the recent Sri Lankan elections, Sri Lankan stocks rose sharply across all sectors yesterday. The Land and Property sector on the Colombo Bourse shot up 3.40% in just one day highlighting the fact that Sri Lanka is a country enjoying a rising tide of international real estate investor interest.
Interest has also been peaked recently by the announcement that Sri Lanka and Pakistan are to cooperate to promote tourism in both countries. It is likely that this partnership will see rising numbers of visitors attracted to the stunning Sri Lankan coastline and demanding increasing numbers of hotel beds and private accommodation.
Naturally enough any hints that tourism numbers could rise will always draw international property investor interest - and Sri Lanka is no exception in that investors are looking at initiatives to develop and extend existing resorts in the country for example.
Another announcement that has drawn international interest is the one relating to Sri Lanka developing free trade zones to allow the likes of Pakistan and India to develop and manufacture goods at massively reduced prices and to have direct channels for European exports. Sri Lanka is the only South Asian nation with direct market access to the entire EU and its strategic position makes it an incredibly attractive country in which to invest – the announcement that it is to develop free trade zones just made the country even more economically attractive.
The final factor that has seen international interest in land and property in Sri Lanka rise is the fact that retail figures in the country are up suggesting that the Sri Lankan economy is remaining strong. According to a Bloomberg News Survey the Sri Lankan economy has enjoyed a period of uninterrupted growth since February 2002 and the Sri Lankan government are targeting growth in the region of 6% for 2006 and to fuel growth the government have suggested that they may cut interest rates.
All of these facts ensure that property investment confidence is Sri Lanka remains high.
