CSE and SEC launches Real Estate Investment Trusts in Sri Lanka
Average investors will have the opportunity to reap the benefits of investing in publicly traded securities
On 29 September, the Colombo Stock Exchange (CSE) and the Securities and Exchange Commission of Sri Lanka (SEC) revealed the launch of Real Estate Investment Trusts (REITs) in the country, which will enable average investors to profit from property investing and to reap the benefits of investing in publicly traded securities on SCE, reported The Island Online.
The framework was first presented by the SEC using rules with reference to section 53 and 13 of the SEC Act that was established last 31 July. These rules will oversee the overall REITs process in Sri Lanka.
On the other hand, the CSE also devised guidelines for the listing of REITs units.
More: Expat and international investors reignite Sri Lanka’s property sector
With the launching of REITs, Sri Lanka’s economy is expected to benefit as it will pave way for liquidity through listings, increased tax revenues, creation of new jobs, economic growth, as well as direct investments from foreigners into the country.
Since increased transparency and stronger corporate governance is necessary for REITs, the regulatory bodies and the investor community will be obliged to evaluate the quality and feasibility of each project.
In the meantime, the CSE and SEC, along with the regulatory authorities, reveal that they will continue to set up a more favourable atmosphere to promote greater investor and company participation.
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