The Blue Ocean Group of Companies has grown into a versatile conglomerate over the years. The evolution of the group is significant because the Group has achieved growth and profit harmoniously and not by taking part in the aggressive competition in the field.
The company’s business segments include; real estate, construction, engineering, trading, education, travels and holidays, entertainment and consultation.
Its chairman, Thumilan Sivarajah says the government’s commendable decision to grant a temporary residence visa for a period of two years (extendable on expiry), under the ‘Dream Home’ policy has encouraged many retired expatriates who are looking to migrate to warmer countries, to consider investing a stipulated amount of money towards purchasing property in the country.
Q: Are customers purchasing apartments or condominiums purely as an investment or do they actually plan to live there?
A: We have identified three types of customers generally in the market and this segment includes the customers who want to buy apartments purely as an investment, then those who want to buy an apartment as a holiday home (Especially the expats living abroad) and then finally customers who simply desire luxurious living.
It’s all about location; they say in real estate and standing by this philosophy we have placed our projects in key areas of the country which has a direct link towards influencing the purchase intention of our customers.
Q: Is there adequate demand to justify the boom in apartment construction, especially in the luxury segment?
A: We are quite aware that many without prior experience or knowledge in the industry have made baseless predictions that there will be a drop in demand or claiming that the market will reach its point of saturation soon.
However, this is an exaggerated claim far above the truth, as we are quite aware as a market leader about the behavioural aspects of this housing market.
Many of the Sri Lankan nationals who left the country during the civil war and having lived overseas until now in Europe, Australia, Canada and USA have begun returning to their country of birth seeking an abode for retirement which also will provide them with a sense of belonging and the opportunity to be amongst family and friends.
Further, our conducive climate in comparison to the countries mentioned above and the religious and cultural traditions makes them reminisce the bygone times.
As a result, vast numbers of expats are looking to buy apartments for both investment and accommodation purposes. Since of late, purchase of condominiums in Sri Lanka by high net-worth expats has seen an exponential growth.
Accurate research by those who intend to purchase property here would indicate that the prices of apartment buildings in our country continue to be attractive when compared with other property prices in Europe, Hong Kong or even China.
The government’s decision to grant a temporary residence visa for a period of two years (extendable on expiry), under the ‘Dream Home’ policy is an encouraging move.
Countries such as Malaysia and Dubai have gained through such policies. However, the implementation of such policies and processes has been rather slow to be adopted by the relevant authorities, due to the lack of clarity in them.
Q: How can we look towards attracting more people to settle in our country?
A: One positive way in which this could be achieved is by promoting Sri Lanka as a destination for higher education and learning. By being a lecturer myself, I know that our standards of education and coaching methods, through our simplified learning methods, could be compared with the best in this region.
We have good colleges and private universities which could easily be regarded as part of such a plan to attract international students. This would ideally bring in much valued foreign exchange and an automatic requirement for dwelling spaces for students and their guardians.
Sri Lanka also has extreme potential to attract those seeking medical treatment in our region, such as patients who travel to India, to visit our own country towards obtaining the same. We definitely have the necessary infrastructure to act as a medical hub for the region, while considering the number of private hospitals which are efficient and the doctors who are available here for consultation. Our hospitals and treatment centres have modern facilities.
The Immigration Department already offers visa for those obtaining medical treatment and this, as mentioned previously, would ideally enhance the requirement for long term lodging solutions. The government authorities should clearly take adequate steps to promote this concept due to its immense potential.
Q: Does our public utility system such as the provision of water, electricity and telecommunications have the capacity to cater to the entire number of high rise residential complexes?
A: This question contradicts what we spoke of earlier, where we discussed a lack of buyers for the completed high rise housing complexes, as we now discuss the ability to accommodate the extra demand for utilities. Through economies of scale, the government owned public loss-making utility companies could actually begin to generate profits by their supply of such utilities to apartment buildings.
The government is capable of expanding the service of its utility companies to provide the entire requirement, but needs to plan out its strategy in the long term, to ensure continuity without a frequent breakdown in services.
Q: In which parts of the country do you see the most growth, in terms of real estate – and why?
A: However, Colombo will remain as the primary location for dwelling when you consider how well the city is established with its government departments, schools, hotels, places of worship, proximity to the airport, and entertainment locations.
Q: How intense is market competition – and what strategies do you employ to stay ahead?
A: Despite the presence of approximately 23 Chinese and other developers, the demand and sales of our apartments have never been higher, which clearly indicates growth.
Q: What do you think are the key challenges and restraints faced by your particular industry?
A: The key challenge would be the lack of practical knowledge in the skilled worker’s category of the construction industry. The government needs to take adequate action to provide such required industrial based training methods to develop their core competencies in construction programs as a critical success factor.
Although several companies lament the lack of skilled construction workers in the country, we have never faced such issues due to the generous remuneration packages offered for we believe a happy worker will be more productive and it is beneficial for the worker as well as the company.
Q: If given an opportunity to introduce or alter existing laws or regulations in your industry, with a view to aiding growth, what would they be?
A: Most laws in Sri Lanka were drafted decades ago and upon study, they should be altered to accommodate the present and the future growth of any business. There needs to be drastic changes and a relaxation of the laws concerning foreign exchange, which would promote the inflow of foreign exchange.
The authorities should also look towards employing young and dynamic professionals in government departments to facilitate the new world change.