Listed companies are encouraged to submit proposals and recommendations to be included in the National Budget
According to Security and Exchange Commission (SEC) officials, the revised tax incentives on the Inland Revenue Act to assist the newly introduced SL-REITs (Sri Lanka Real Estate Investment Trusts) have motivated real estate companies to hop on board, reported The Sunday Times.
SEC Chairman Viraj Dayaratna, said: “The SEC submitted budget proposals and other representations to the Ministry of Finance on SL- REITS and some property companies are quite interested and are awaiting the gazette on the tax.”
Along with SEC proposals, the proposals and recommendations from the listed companies and market participants have been submitted to the Ministry of Finance, which will then verify whether they can be included in the National Budget.
Dayaratna added that the SEC can now authorise a managing company to establish SL-REITs, together with a bank appointed by the company to serve as a trustee for the trust, to be created by a trust deed. Thereafter, the managing company will have to apply for an IPO to be listed on the Colombo Stock Exchange (CSE).
Construction projects admissible for SL-REITs are those that are already completed, have at least 20 percent occupancy, and are earning profit.
Meanwhile, the final policy to allow Repurchase Agreement (REPO) transactions regarding Corporate Debt Securities on CSE’s Over-The-Counter (OTC) Platform was finalised with the CSE. The approval in-principle was accorded to the CSE to enforce this system.
“This is to activate the corporate debt market via the CSE after the Unit Trust Association, along with certain commercial banks and Primary Dealers requested the CSE to implement a REPO transaction mechanism for corporate debt securities through the OTC trading platform on the CSE,” concluded Dayaratna.
Navigating Malaysia’s real estate maze in the age of rising rates
Rising interest rates and housing affordability concerns weigh on Malaysia’s property market amidst a weaker growth outlook
From slump to stability: Is china’s housing market on the road to recovery?
China’s housing market finally recorded growth in the first quarter. But market analysts say it’s too soon to talk of a recovery despite positive signs
Mongolia’s capital at a crossroads: Ulaanbaatar’s rapid growth sparks urban planning dilemmas
Ulaanbaatar’s housing boom has exposed planning deficiencies within unprecedented growth
Meet the dynamic duo putting waste to work in Indonesia
Indonesian entrepreneurs Ovy Sabrina and Novita Tan have made a meaningful mark with their firm Rebricks