The volatile political situation is a challenge over which the private sector has very little control over and while the commercial real estate sector in Sri Lanka has the potential to become an attractive destination for office spaces, particularly as international trade resumes, new challenges have emerged, Sunil G Wijesinha, Chairman told shareholders in RIL Property annual report 2021/2022.
The changes to monetary policy including the rising interest rates, together with the increased maintenance costs will have an unavoidable negative impact on the bottom-line.
“We are responding proactively to the dynamic macro environment with new strategies, including plans to quote our rates in dollar terms.”
Given the urgent need for conserving foreign exchange, we cannot expect an easing on the restrictions on vehicle imports in the near future. While we fully appreciate the validity of this policy decision, it must also be stressed that the country’s entrepreneurs must be supported to recover from this deep crisis. Therefore, we call on the regulatory authorities for their cooperation in the production of locally assembled vehicles, which is key to meeting the demand for high quality, new vehicles in the country. The renewable energy sector will play a vital role in meeting future energy needs of the country, and it is essential to encourage investments into the sector expeditiously.
Procedural and operational clarity will encourage genuine investments and competitive bidding within the sector. We believe PAP has excellent prospects in view of the growing demand for energy, not only within the country but also in other developing-country markets. The growth strategy of the R I L Property Group will continue to be diversified within the same business returns segment. We are constantly evaluating suitable market opportunities and look forward to making further investments.
The RIL property Group also recorded revenue of RS 14,447 million for the year in comparison to Rs 14,490 million 2020/21, whilst the Net Profit after Tax was Rs 793 million. in comparison to Rs 1,085 million. 2020/21. The Company was the main contributor to the increase in Net Profit after Tax due to the revaluation gain of Rs 424 million. arising out of its investment property. (IH)
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