On’ally Holdings MD welcomes moves to properly regulate real estate industry

On’ally Holdings Managing Director Hardy Jamaldeen

On’ally Holdings Managing Director Hardy Jamaldeen yesterday welcomed moves to properly regulate the real estate industry.

“Regulation of the real estate industry should have come sooner. Regulating the real estate sector is important because we need to benchmark ourselves with countries such as Singapore, Malaysia and the United Kingdom which all have thriving real estate sectors,” said Jamaldeen who is also the Managing Director of Lanka Realty Investment (LRI) which owns 50.89% stake in On’ally Holdings, known for Unity Plaza complex at Colombo 4. LRI operates within the residential, commercial and leisure markets.

The need for effective regulation of the real estate sector came up prominently at a Central Bank Financial Intelligence Unit (FIU) organised awareness program last month for the real estate sector on “Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Compliance Obligations and New Developments.”

The event saw over 120 participants from the industry as well as officials from the Registrar General’s Department, Colombo Land Registry, Condominium Developers’ Association of Sri Lanka (CDASL), CMA, The Ceylon Chamber of Commerce and Urban Development Authority. The keynote address was delivered by CBSL Governor and National Coordinating Committee on AML/CFT Chairman Dr.  Nandalal Weerasinghe, Urban Development and Housing Ministry Secretary W.S. Sathyananda, Construction Industry Development Authority (CIDA) Chairman Eng. R.H. Ruvinis, and Hardy Jamaldeen representing the real estate sector also addressed the gathering. Condominium Management Authority (CMA) Chairman Sarana Karunaratna also graced the occasion.

Jamaldeen, representing the real estate sector, emphasised that the Sri Lankan real estate sector is at a momentous position in time, and that it was the right time to establish a world class compliance culture within the industry and aim to be a world class destination for investors to the sector. He also emphasised that the real estate sector should be demanding a single regulator like in the other countries.

Urban Development and Housing Ministry Secretary W.S. Sathyananda told the event that introducing a regulatory framework for the real estate sector would assist in better implementation of AML/CFT requirements by reducing the degree of vulnerability in the sector and further it would assist in improving the investor confidence thereby enhancing the attractiveness of the real estate sector for foreign direct investments.

Construction Industry Development Authority (CIDA) Chairman Eng. R.H. Ruvinis in his speech mentioned that the expected outcome of an introduction of a regulatory framework for the real estate sector is to ensure that a culture of accountability and transparency are being fostered, which will serve in achieving sustainable development and prosperity in the country.

The FIU has been lobbying the Government to set up a regulatory body for the sector in order to register the companies engaged in the real estate business so that their activities can be monitored more effectively.

The need to regulate the sector has been recognised by all stakeholders and given the highest priority, it is envisaged to establish a mechanism to register the institutions engaged in the real estate business with CIDA until a separate regulatory framework is established.