BIZ

Real estate companies to go bankrupt?

Published

1 year ago

October 6, 2023

editor

The sale of housing units and condominiums in apartment complexes and mixed development projects has fallen by 91% in the first quarter of this year compared to last year, a report by the Central Bank of Sri Lanka (CBSL) revealed.

This is a 40% drop compared to the last quarter of 2022.

According to the reports, 50% of the condominium trades that took place in the first quarter of this year were houses and businesses worth between Rs.25 million and 50 million, while only 7% of houses and properties were purchased with a price of more than Rs.75 million.

It stood at 16% in the last quarter of 2022.

The decline in the purchase of apartments and business premises is mainly due to the increase in property prices. The prices in the Colombo District have increased by 24% compared to last year and by 10% compared to the last quarter.

Almost 50% of the properties purchased are for immediate occupation and about 28% are for future occupation.

According to the CBSL report, the purchase of these properties as investments has decreased by about 8% compared to last year.

Meanwhile, sources said that this situation will worsen due to Sri Lankans leaving the country in large numbers and due to excessive bank loan interest rates.

They also warned that real estate companies may go bankrupt since many companies have taken bank loans that they cannot afford to pay back.

They pointed out that Blue Mountain Company, which was one of the leading real estate companies in Sri Lanka, is an example of bankruptcy due to excessive borrowing.

BIZ

New board of directors appointed for SriLankan Airlines

Published

2 days ago

October 10, 2024

editor

Sarath Ganegoda has been appointed as the new Chairman of SriLankan Airlines, effective from October 9.

Alongside his appointment, a new Board of Directors has been announced for Sri Lanka’s national carrier under his leadership.

New Board of Directors of SriLankan Airlines:
1. Sarath Ganegoda (Chairman)
2. Buddhika Hewawasam
3. Sugath Rajapakse
4. Eranga Rohan Peiris Goonetilleke
5. D. Arandara
6. Ananda Athukorale
7. Lakmal Ratnayake
8. Niranjan Arulpragasam

Ganegoda, a respected business leader, is currently the Group Executive Director of Hayleys PLC and the Deputy Chairman of Alumex PLC.

He has held senior management roles in both local and international companies and is a Fellow of CA Sri Lanka, as well as a member of the Chartered Management Accountants of Australia.

BIZ

Trishaw fares revised

Published

3 days ago

October 9, 2024

editor

Three-wheeler fares have been revised as of today (Oct. 09).

According to Mr. Jeewinda Keerthiratne, who heads the three wheel bureau of the Road Passenger Transport Authority, the first kilometer remains at Rs. 100 while the second kilometer will be Rs. 85.

BIZ

Egg prices spike again

Published

3 days ago

October 9, 2024

editor

Egg prices have upped again after the recent price drop.

The price of an egg was seen reduced to Rs. 30 in local markets recently but had spiked to over Rs. 40 this week.

Chairman of Sri Lanka Livestock Producers Association – Ajith Gunasekara stated that several factors have impacted the relevant price hike.

Speaking at yesterday’s Cabinet briefing, Cabinet spokesman – Minister Vijitha Herath said that they are looking to stabilize the prices of chicken feed which will in return control egg prices.