Tsunami Boom

The tsunamis that ravaged Sri Lanka are unlikely to dampen the island nation’s booming property market in the months ahead as foreigners hopefully sniff out bargains and aid floods in, analysts said. The tsunamis that ravaged Sri Lanka are unlikely to dampen the island nation’s booming property market in the months ahead as foreigners hopefully sniff out bargains and aid floods in, analysts said. Property prices on the palm-fringed island nation have risen dramatically in the past three years, due partly to a February 2002 truce in its long-running civil conflict holding, a rise in interest among well-heeled Sri Lankan expatriates as well as the abolition of a tax on foreign buyers.

In some areas of Colombo, properties were being sold for double or triple their price pre-tsunami compared to a few years ago, while beachside properties did a roaring trade despite the reintroduction of the 100 percent stamp duty for foreign buyers in 2004.

And analysts say that the December 26 tsunami tragedy that killed nearly 31,000 Sri Lankans has not curbed market enthusiasm for either foreign or domestic buyers.

“Given what has happened it’s actually surprising…. There has been a tremendous