International property market is an area of major concern in socio-economic development in world cities under market economic policy. This market evolves parallel to the open economic policy and it is one of the major sectors through foreign investments flow into countries. Since Sri Lanka liberalized its economy in 1977, foreign investments have become an important element in the economic growth. In this context, it can be argued that the state policy to encourage the international property market is a prerequisite for economic development. The aim of this paper is to review the Sri Lankan state policy on international property market. This study focuses on the situation in Colombo with especial reference to residential properties. Qualitative as well as quantitative data from both primary and secondary sources were used and a purposive sample of 15 property developers was interviewed. The study found that the property market activities are strongly connected with issues relating to infrastructure facilities, zoning and planning regulations, tax policies, poor land information system, and civil unrest.
Keywords: Economic growth; International property market; Residential property; State policy
Sri Lankan Journal of Humanities and Social Sciences Vol.1(2) Oct 2009