Sri Lanka debuts in the JLL Global Transparency Index 2016
View(s):Sri Lanka has made its debut in JLL’s 2016 Global Real Estate Transparency Index. Compared to similar market sized countries like Myanmar (ranked at 95) and Vietnam (ranked at 68), Sri Lanka (ranked at 69) is a stronger debutant and better placed to move up in the next (2018) assessment given the reforms being rolled out by the government and increasing interest of international investors into the market, the company (JLL) said in a media release. “Sri Lanka and Vietnam are likely to compete for moving into the semi-transparent category – ahead of others in the pack – from their low-transparency status today. Both countries are reforming several sectors and attracting international investors.
Myanmar too, is off the block and is one of the fastest improvers, but has a long journey to make through the cluster of countries with opaque real estate sectors,” it said. The government’s plans of turning Sri Lanka into the most competitive economy in South Asia is expected to result in an incremental demand for office space from BPOs, financial, accounting and outsourcing companies. According to the Travel and Tourism Index 2015, Sri Lanka’s travel and tourism competitiveness jumped 18 ranks over the past four years, driven by the strong government focus on the tourism sector, remarkable infrastructure growth as well as enhanced marketing and promotional efforts for the country as a whole.
This sector is expected to grow further with the new budget of 2016 proposing promotion of the MICE (meeting, incentives, conferencing and exhibition) sector, the release said. Sri Lanka’s office and retail markets are seeing activity by reputed global names. This activity is reflecting through the growth in office and retail space off-take in last four quarters. With limitations of quality space available, the CBD sub-market rents have increased by 7-10 per cent year-on-year in almost all grade-A office buildings. “Respected establishments like HSBC, Standard Chartered, Pearson Group, IDP Education, Firstsource, GSK, Red Cross, Uber, VFS (visa services), Zebra Technologies, Keangnam, among others, have already set up their base in Sri Lanka.
Information technology leaders like IBM, Microsoft, and Cisco already have a base here. Renowned retail brands like The Body Shop, Tommy Hilfiger, Lacoste and others, are doing business in Sri Lanka largely through the franchisee route and more brands of the same league are actively studying this market. H&M is already active for buying and sourcing. Diverse base of international companies is evident by established fast moving consumer goods giants like Johnson & Johnson, Nestle, and Unilever; service sector leaders like JLL, Tata Group, AIA, Allianz, and industrial- technology- logistics companies like Siemens, Ericsson and Maersk among others along with the best hospitality brands of ITC, Taj, Hyatt, Hilton, Shangri-La and Marriot,” the release said.