Abstract:
Sri Lanka practices market-oriented economic policies concerning its’ development for
nearly three decades. Therefore, it is important to evaluate the country’s experience of
the market system and its impacts even on property development. The main objective of
this paper is to review the evaluation of land and property markets in the country in
general and in the city of Colombo in particular.
This study is based exclusively on secondary data and a theoretical exercise. This paper
discusses in detail about the historical context of property development, new
experiences in the recent past and the current challenges in the sector.
The study realizes that the Colombo case provides a valuable experience for the global
body of knowledge regarding “urban real estate markets in developing countries”. In fact,
massive economic reforms have already established the market system in the country in
general and in the capital city of Colombo in particular. However, frequent political
instability, and civil disorder prevailed in the recent past prevent the market system from
smooth and rapid growing.
In addition, state vision on more advanced real estate development seems inadequate.
State mere belief is handing over the responsibility to the private sector as a panacea.
Research & development, internationally accredited professional practices etc are lack in
the state attention. As in many developing countries, even in Sri Lanka, mostly valuation
and planning professions are still used as statutory and some legal purposes. Therefore,
the land and property market in the city of Colombo is growing slowly due to such social,
political, and professional constrains, which keep the market still in less efficient and
immature. Therefore, higher property price and unsatisfactory demand and imprudent
private sector land development have become serious consequences in Colombo city
and suburban land and property markets.
