The Hon. Bimal Rathnayake

¶ 01 Hon. Leader of the Opposition, what has happened to you today bringing a few “Pohottuwa” people? They are tarnishing your name. Who is this? Hon. Speaker, please do not value that. No one values him. Next time he will not even have a party to grant him nomination. Who is he, Hon. Speaker? There are Members here like Kings Nelson and Rohana Bandara; we know they are SJB. But who is he? Hon. Speaker, please allow me to proceed. Today we have to debate three important Bills.

¶ 02 Hon. Speaker, please instruct the Hon. Leader of the Opposition to come to his seat and not allow this group to ridicule the high office he holds in this House.

¶ 03 Hon. Speaker, today we present three Bills: the Institute of Real Estate Professionals, Sri Lanka Bill; the Container Depot Operators Licensing Bill; and the Licensing of Shipping Agents, Freight Forwarders, Non-vessel Operating Common Carriers and Container Operators (Amendment) Bill. The Minister of Ports and Civil Aviation is abroad on official duties; therefore, I am presenting Items 2 and 3 on his behalf as well.

¶ 04 First, let me outline the primary objective of the Institute of Real Estate Professionals, Sri Lanka Bill. The real estate sector has grown significantly in Sri Lanka. This necessitates a cadre of diverse professionals and for them, suitable regulation, professional standards, ethics, and formal linkages with the industry. Parliament has established professional bodies across many vocations. Today we are initiating a new era for the property development and investment sector by establishing the Institute of Real Estate Professionals, Sri Lanka, through this Bill.

¶ 05 This has national significance. It is not merely the creation of a professional body; I see it as a structural reform to support macroeconomic stability, financial transparency and the productive deployment of skilled human capital for national development. The Minister of Ports and Civil Aviation, Hon. Anura Karunathilaka, worked extensively on this Bill; we appreciate his efforts.

¶ 06 Post-crisis, as the economy recovers, real estate and investment have become key drivers. As per the Central Bank’s 2024 reports, real estate activities and ownership of dwellings grew by around 4 percent in 2024. Market capitalization of property development and investment companies on the CSE has exceeded Rs. 100 billion, reflecting strong domestic and foreign investor confidence.

¶ 07 However, allowing such a high-capital, high-risk sector to operate without proper regulation is untenable. Our programme with the IMF emphasizes institutional governance, transparency and accountability. Leaving a high-risk sector like real estate development and investment unregulated would undermine the confidence we have rebuilt. This Bill will meaningfully close that gap.

¶ 08 A major driver is also our national AML/CFT obligation. The FIU’s 2024 Annual Report identifies the real estate and investment sector as a “medium to high” risk area for money laundering. Without regulation, illicit funds can be laundered through property transactions, inflating prices and moving home ownership out of reach for ordinary citizens. To meet the FATF assessment in 2026, we need registration of real estate professionals, clarified obligations and a regulator implementing AML/CFT standards.

¶ 09 Equally, this Bill advances human capital development. Our universities — Sri Jayewardenepura, Moratuwa, Colombo — are producing graduates in property management, valuation and investment analysis. Yet a robust governance framework to channel their skills into the economy has been lacking. The institute will afford recognition, accountability and an ethical framework, lifting quality in the sector.

¶ 10 We are not privileging or discriminating against any profession. Through clear licensing, standards and ethics, we will create a trusted environment for local and foreign investors. This Bill is not against any professional cohort.

¶ 11 Extensive consultations were held with stakeholders and related professions. Hon. Eranga Gunasekara, as well as Hon. Anura Karunathilaka, exerted great effort. The Ministry of Finance had wide discussions to ensure fairness to other professions while also enabling this presently un-institutionalized group to have a recognized body. We have obtained judicial clearance, and two amendments were proposed by the Sectoral Oversight Committee, which we will adopt.

¶ 12 Wherever feasible, we will accommodate consensus-driven refinements that do not alter the core thrust of the Bill. Our objective is macro-stability, financial transparency and optimal use of skilled human resources. Laws evolve; once the institute functions for several months, if any unfairness emerges to the economy or to a professional group, we will revisit and amend.

¶ 13 Separately, I must address an unfortunate incident relevant to my Ministry. At the “Helamuthu Sewana” housing complex in Henamulla under the UDA, a ceiling slab segment detached, injuring a 7-year-old child who has since tragically passed away. This complex has two blocks, “A” and “B,” comprising 1,043 units, begun on 28 October 2014 and handed over on 30 October 2019. The immediate cause was a localized weakness between units 24 and 25 in Block “A.” The contractor was Sanken Construction (Pvt) Ltd., consultant CECB; construction cost Rs. 4,138 million with Rs. 125 million consultancy.

¶ 14 Following the incident, the child was admitted to the National Hospital. The complex management responded. In these UDA-built schemes (around 70 buildings with close to a million residents), there are recurrent issues: cracked walls on upper floors, wastewater pipe leaks and detachments, corroded handrails, sagging slabs. There is also vandalism: removal of lift fittings and bulbs by drug addicts. The UDA must investigate thoroughly. After taking office, we allocated Rs. 325 million to undertake urgent repairs on the most at-risk buildings, including this one.

¶ 15 At Thotalanga, with AIIB-financed new housing nearby, residents reported wall cracks. I ordered an NBRI report to determine causes. The broader issue is that low-income families were provided housing and then left without adequate ongoing support. UDA resource allocation has been skewed: for 70 buildings with roughly 24 blocks each, staffing and maintenance are minimal — only about five technical officers, a single engineer, and one vehicle. We have now appointed a Director-General for Housing and are reallocating human resources.

¶ 16 Historically, the UDA has been regimented to serve elite assets like Arcade Independence Square and Colombo Gold Centre over maintenance of 14,000 housing units. We have initiated a rebalancing and called for NBRI assessments. The organizational culture must evolve from park-building and seafront beautification to serving ordinary working-class urban communities with safety and dignity. We are pressing for systemic change.

¶ 17 Hon. Speaker, my time is over. Please allow me one minute.

¶ 18 I am deeply saddened. If it were my child, I know the pain. Money and compensation cannot replace a child. We express condolences and seek forgiveness from the family; we will also ensure compensation and undertake maximum efforts to improve safety. Urban development must reach all cities — Jaffna, Kilinochchi, Mullaitivu, Nuwara Eliya — not only Colombo. We will change the “DNA” of urban development to minimize such tragedies and support those affected.

¶ 19 Thank you.

¶ 20 Question proposed.