Property Boom

From left: Dr. Fernando Im, Senior Country Economist for Sri Lanka and the Maldives, The World Bank, Hon. Eran Wickramaratne, State Minister, Ministry of Finance and Mass Media, Dr. W A Wijewardana, Former Deputy Governor of the Central Bank of Sri Lanka, Prof. Indralal de Silva, Former (Chair) of Demography, University of Colombo, Prof. Amala de Silva, Department of Economics, University of Colombo at the panel discussion on "Demographic Change in Sri Lanka" moderated by Dr. Ramani Gunatilaka, International Centre for Ethnic Studies.

Prime government land could soon be released for development to the private sector under a new plan to put them to more productive use. The government, which is the largest landowner in the country, plans to implement the scheme with donor support.rn
A top investment bank has already been given the mandate to come up with detailed plans on how the properties can be managed better.rn

rnThey say the properties will be put in to a separate company or trust with options for the government to list this company in the stock exchange.rn

rnCiti National Investment Bank is trying to pool underutilised properties in to a single entity that can be managed with private expertise.rn

rnThe model is quite simple.rn

rnThe owners of the land will initially have to transfer their holdings to a special purpose vehicle or SPV.rn

rnThis could either be a limited liability company or a trust.rn

rnThe SPV will in turn issue shares to the landowner.rn

rnThe SPV will also be listed in the Colombo St