REITs in Sri Lanka: Investing in Property with Rs. 1000
December 25, 2025
REITs in Sri Lanka: Investing in Property with Rs. 1000
Democratizing Real Estate.
Buying a building costs billions. Buying a share of a building costs peanuts. That is a Real Estate Investment Trust (REIT).
1. How it Works
- A Company (Fund) buys a grade-A asset (e.g., World Trade Center, Shangri-La Mall).
- It splits the value into "Units" (Shares).
- You buy Units on the Colombo Stock Exchange (CSE).
- The Fund collects rent and pays 90% of it to you as Dividends.
2. Current Status (2025)
The Colombo Stock Exchange introduced rules for REITs recently.
- Availability: Still limited. Only a few major players (like Prime Lands, etc.) typically explore this space.
- Yield: Expected dividend yield is 8-10% (better than Fixed Deposits in some cycles).
3. Pros & Cons
| Pros | Cons |
|---|---|
| Liquidity: Sell your "land" instantly like a stock. | Control: You can't choose the tenants or paint the wall. |
| Entry Point: Invest with Rs. 10,000. | Market Risk: If stock market crashes, Unit price drops. |
| Quality: Own a piece of Grade-A commercial real estate. | Limited Options: Very few REITs listed in SL yet. |
Check the CSE. Investment Guide