Condominium developers set up Association

Tuesday, 7 July 2015 01:40 -     - {{hitsCtrl.values.hits}}

The Condominium Developers Association of Sri Lanka (CDASL) was established by reputed companies engaged in Condominium Development and Allied Industry. The primary objective of the association is to promote the interest of condominium developers in Sri Lanka, whilst working towards the development of the industry. CDASL is an affiliated association of the Ceylon Chamber of Commerce which was founded in 1839. 

The association has already engaged various policy makers and Government bodies and has made submissions and recommendations for the development of the industry.

The need to amend the Apartment Ownership Law and Condominium Law to cater to the changing requirements of the Industry including the growing number of mixed-use developments have been taken up by the Association with the Condominium Management Authority.

Proposals have been made to review the new Land Law with particular reference on allowing foreigners to purchase condominium units above the fourth floor without any restrictions such as the 100% inward remittance of purchase consideration and withdrawing the 7½% lease tax on rents to foreigners. 

Allowing foreigners to borrow through the Sri Lankan banking system to purchase apartments was also proposed   to further develop the property sector. The idea of a special residency status to foreigners investing a minimum amount of Forex into the country; including for the purchase of condominiums was mooted.

The association also made representations to strengthen the BOI and to empower it as a ‘one-stop shop’ to investors. Proposals to remove the negative list or alternatively restricting it to accommodate only those items that could not be manufactured competitively in the required quality and quantity in Sri Lanka were made. 

With regard to VAT, it was pointed out that VAT on the sale of apartments is charged only on projects above $ 10 m. Further, projects below $ 10 m is not subjected to VAT on sales. It was recommended to standardise and exclude VAT on apartment sales, thus making housing more affordable.

Some of the other objectives of the Condominium Developers Association are to provide a focal point for condominium developers to meet, discuss and solve common problems, to formulate a Code of Ethics for condominium developers, to act as a spokesman for the condominium development sector in its dealing with the Government and other institutions, to organise lectures, seminars, etc. for the benefit of the members, to circulate information to members and also to carry out such other activities as may be necessary to promote the interests of condominium developers in Sri Lanka.

Any company, firm or proprietorship engaged in any type of condominium development is eligible for election as an Ordinary Member of the Association, whilst those engaged in any type of allied industry or in the provisions of services to condominium developers are eligible for election as Associate Members of the Association.

Founding Council members of CDASL are Pravir Samarasinghe – Chairman (Overseas Realty Ceylon Plc.), S. Thumilan – Vice Chairman (Blue Ocean Residencies Ltd.), Hemaka De Alwis (Fairway Holdings Ltd.), Suresh Rajendra (Whittall Boustead Ltd.), Prasanna De Zoysa (SMI Housing Development Ltd.), Pinsiri Fernando (Suncity Property Developers Ltd.), Kishore Reddy  (Quest & Query Ltd.), B. Premalal (Prime Land Ltd.) and Lalitha Jayasooriya (Gampaha District Sanasa and Credit Cooperative Societies Union Ltd.).