Condominium developers set up association

Reputed companies engaged in condominium development and allied industries have formed the Condominium Developers Association of Sri Lanka (CDASL) to promote the interests of condominium developers in Sri Lanka, while working towards the development of the industry.

CDASL an affiliate association of the Ceylon Chamber of Commerce was founded in 1839. The Association has engaged various policy makers and Government bodies and 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 needs of the industry including the growing number of mixed-use developments has been taken up by the Association with the Condominium Management Authority.

Proposals have been made to review the 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 7.5% 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 bringing a certain amount of forex into the country, including forex for the purchase of condominiums was mooted.

The Association also made representations to strengthen the BOI and 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 needed 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 US$10 million. Projects below US$10 million are 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 developers to meet, discuss and solve common problems, to formulate a code of ethics, to act as a spokesman for the Condominium Development sector in its dealing with the Government and other institutions, to organise lectures and seminars for the benefit of the members, to circulate information to members and promote the interests of condominium developers.

Any company, firm or proprietorship engaged in any type of condominium development is eligible for election as an ordinary member of the Association, while 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.