The Housing and Construction Ministry has expressed its readiness to assist the Land Ministry and the Urban Development-related authorities to implement regulatory reforms to control the country’s land-related issues, especially property ownership.
Deputy Housing and Construction Minister, T.B. Sarath has told the media that the Ministry is prepared to collaborate with the Land Ministry and the Urban Development-related authorities to translate Parliamentary proposals into action. He has noted that, “As suggested in Parliament, a regulatory body to oversee the pricing of lands, houses, and housing schemes is a critical necessity for the future of this country. The Housing and Construction Ministry will fully support the Urban Development-related authorities in making these suggestions a reality.”
According to reports, the call for intervention follows a statement made in Parliament earlier this month where Deputy Urban Development Minister Eranga Gunasekara raised the alarm over the unchecked surge in property values, which he attributed directly to the absence of a dedicated pricing regulator. Addressing the House on 6 February, Gunasekara had noted that, “A situation has arisen where the prices of lands, houses, and housing schemes have begun to escalate sharply.” He had also stated that this market volatility is a direct consequence of the “non-availability of a regulating body.”
The Deputy Minister had further characterised the current market dynamics as deeply problematic, mentioning that he identified this situation as a “mafia.” Gunasekara had stressed that “immediate intervention to address this issue is needed” to protect prospective homeowners and to stabilise the sector.
Sri Lanka’s property market has reportedly experienced a dramatic transformation since the economic crisis of 2022, evolving from a sector in distress to one characterised by soaring prices that have placed homeownership beyond the reach of most citizens. According to the latest Numbeo Property Investment Index, Colombo has been ranked as the world’s most unaffordable City for homebuyers this year, recording a price-to-income ratio of 55.1 – the highest among 395 cities monitored globally. This means that it would take over 55 years of a household’s entire income to purchase a standard apartment, assuming no other expenses.
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