Condo association calls for immediate resumption of projects
View(s):Condo projects, reeling on the back of the corona pandemic is seeking the government’s assistance to get back up.
The sector slowdown owing to the delay in procurement of materials from China and the complete stoppage of work due to the curfew was exacerbated by the lockdown of construction workers after the Chinese New Year. This also adversely affected the industry, as many construction projects are undertaken by Chinese contractors. With a global slowdown, attracting new FDI and launching new investments will be substantially harder, Premalal Premalal Brahamanage, Co- founder and Group Chairman of the Prime Group noted to the Business Times. He added that adequate lines of foreign funding should be sought to manage short term pressures on the currency.
In this light, the Condominium Developers Association of Sri Lanka (CDASL) in a letter to the President is calling for monetary policy to be used wisely to provide ample liquidity, ease financial stress of their sector and thereby stimulate the sector and stimulate auxiliary industries.
Their proposals are permit and facilitate starting construction projects as soon as practically possible; include property developers among the list of industries/sectors eligible for financial concessions recently announced by the Central Bank to help with working capital/cashflow pressures; permit importing project-related material; PAL, CESS and other such levies to be waived on project-related material for a stipulated time period to stimulate the development activities and reduce cost structures; encourage new investments greater than a stipulated value by granting very attractive concessions; fast-track the implementation of REITs and related legislation/regulations and encourage foreign buying/investment in Sri Lankan real estate were included.
“The property development industry is the primary employer and revenue source for the majority of professional construction firms, as well as thousands of SMEs across the economy, from small scale building material providers, to manufacturers and installers of a range of finished goods and equipment. A slowdown in development activity will have immediate impact on these firms (and their employees) which will only get resolved when development projects are able to move forward,” the letter said.
(DEC)