Sri Lanka’s real estate market is entering a new cycle, shaped by stabilising interest rates, renewed confidence and a shift towards higher-density urban living. From integrated resorts to core-urban towers and medium-density suburbs, John Keells Properties is using scale and innovation to attract new buyer segments.
Echelon sat down with Nayana Mawilmada, President of the Property & Leisure Sector at the John Keells Group, and Inoke Perera, Sector Head, Property Sector and Executive Vice President at the John Keells Group, to discuss how the company is redefining urban living, what it learned building through crisis and where the next wave of opportunity lies.
Most people know the John Keells Group as Sri Lanka’s largest listed conglomerate. But John Keells Properties has its own identity and purpose within the Group. Could you walk us through what the Property Sector focuses on?
Nayana: The Property Sector has a very specific role within the Group’s ecosystem. Our focus is on conceiving, developing and delivering large-scale real estate projects that are commercially robust, architecturally meaningful and operationally sustainable over the long term.
Equally important is our contribution to the broader economy and urban fabric. Every major project we undertake generates employment across construction, services, retail and hospitality, attracts both local and foreign investment, and helps set new benchmarks for how cities grow and function. While we are part of a larger Group, our purpose is very clear: to build real estate that strengthens both the market and the country in a tangible, measurable way.
Inoke: From an execution standpoint, we operate across the full life cycle of development, from land acquisition, master planning and design, through to construction, financing, sales and long-term asset management. That end-to-end responsibility is critical because it allows us to control quality, manage risk and ensure that what we deliver remains relevant and valuable well beyond the point of handover.
Sri Lanka has faced repeated shocks, yet real estate has stayed resilient. Why is that, and how has the market changed since you entered it over 25 years ago?
Nayana: Real estate has proved resilient because it is anchored in a tangible asset and functions as a hedge against inflation, as long as markets are not distorted by excessive leverage. Sri Lanka’s housing market reflects this. Residential leverage is low, so even through sharp political and economic cycles, prices tend to adjust, stabilise and hold, much like property markets globally.
The market itself has broadened beyond the very top end and become more competitive, while the asset class has remained robust.
How does John Keells Properties’ integrated approach differ from traditional standalone condo towers?
Nayana: Our approach is fundamentally different. We are not just putting up towers and moving on. From Monarch, Emperor, 7th Sense, OnThree20 and TRI-ZEN to City of Dreams, each project has pushed expectations and helped shape the evolution of Colombo. Every development is conceived as part of a larger urban ecosystem, designed to create new worlds that genuinely transform the city rather than operate as isolated buildings.
Inoke: OnThree20 marked a real shift in how we approached development. Designed soon after the war and launched in 2014, it was one of the first major post-war residential projects of scale. That project gave us the confidence to take on larger, more complex and more integrated developments rather than relying on traditional standalone condominium models. From there, each successive project has expanded in ambition, scale and integration.
How are Sri Lankan homebuyers changing in both preferences and financing needs, and what does this mean for rental yields and returns on projects such as TRI-ZEN?
Nayana: Sri Lankan buyers are steadily shifting towards multi-family housing. Colombo has moved from under 10% apartment living in 2012 to about 13.4% today, and over time this should reach 40–50%, which is the only sustainable path for a growing city. Alongside this shift in lifestyle preference, buyers also began demanding smarter financing.
At TRI-ZEN, we responded by helping introduce step-up mortgages, fixed-rate periods and penalty-free exits, and by developing our own proprietary product, the Freedom Mortgage. This allowed buyers to lock in rates during construction and avoid heavy accruals, bringing far greater certainty to long-term home ownership.
TRI-ZEN – The Largest Residential Development in the Heart of Colombo
Inoke: That shift in buyer behaviour fundamentally changed how financing had to work across the market. Developers and banks began partnering more closely to create structures that matched long-term affordability with investment returns. We now work with over ten institutions offering step-up loans, bullet options and longer fixed-rate mortgages.
This combination of smarter product design and financing innovation has driven strong performance at TRI-ZEN. Rental yields are around 6–7%, anchored first and foremost in its unmatched central city location, where work, lifestyle, retail and everyday conveniences are all within minutes. That locational advantage is amplified by the depth of amenities and the quality of the living environment. Units that were first sold at about Rs19 million now trade near Rs50–60 million.
How do projects like OnThree20 and TRI-ZEN differ in positioning and intent from your earlier super luxury developments?
Inoke: The key difference is scale. OnThree20 was already substantial, but our next project, TRI-ZEN, was the largest residential development in the heart of Colombo, with 897 units. It also incorporates smart technology in every apartment, the first in South Asia. With each project, the aim has been to pioneer something new and offer buyers a distinctive product. Delivering that level of innovation has become a point of pride for the team.
Nayana: TRI-ZEN was designed not only for scale but to rethink city living. It offered highly efficient apartments that maximise space and value, addressing a core problem: people work in Colombo but cannot afford to live there. Located in a central position to remove the need for a car, it now functions as a vibrant community with strong yields.
In projects such as OnThree20 and TRI-ZEN, how has the balance between owner-occupiers and investors evolved, and how attractive is the condo market now for capital gains and flipping?
Nayana: Many buyers enter as investors but often plan to move in later or buy for their children, making it a longer-term life decision. The rental market has broadened beyond expatriates, spurred by Port City and other large projects bringing in professionals. After a period of volatility, prices, inflation and interest rates have stabilised, and the economy is on a steadier path.
With only about 13% of Colombo residents living in apartments and constrained public transport, centrally located, core-urban housing and quality condominiums are well positioned for the next upcycle.
Inoke: Across projects like TRI-ZEN, most buyers are still investors. Approximately 75% of the units are held for rental income, with the remaining 25% owner-occupied.
Given that TRI-ZEN and City of Dreams were among the few projects that continued building despite crises, how important is it in choosing the right developer?
Nayana: We are proud to have continued construction through an exceptionally difficult period, which reflects the strength of a large, diversified organisation. Once we commit, we finish. Before launching, we model extreme downside scenarios so we can absorb shocks when they come. For banks and buyers, that stability is critical; in off-plan sales and mortgages, the developer’s resilience matters as much as the product.
“We are not just putting up towers and moving on. From Monarch, Emperor, 7th Sense, OnThree20 and TRI-ZEN to City of Dreams, each project has pushed expectations and helped shape the evolution of Colombo.”
What was the strategic vision behind City of Dreams, and how does VIMAN differ from recent Colombo projects such as TRI-ZEN in concept, positioning, and the market it serves?
Nayana: City of Dreams was conceived as a transformational national project. The vision was to position Sri Lanka firmly on the global map as a premium leisure, tourism and entertainment destination through a US$1 billion integrated real estate and lifestyle development. It was never intended to be just another property development. It was designed to reshape how the world experiences Sri Lanka, blending luxury hospitality, gaming, entertainment, retail and high-end living into a single global benchmark destination.
City of Dreams Sri Lanka – South Asia’s Largest Integrated Resort
VIMAN, on the other hand, was born from a very different strategic need. It reflects Sri Lankan identity and lifestyle at its core. It represents a carefully considered middle path between standalone houses and dense urban condominiums. The focus is on medium-density living, with greenery, water bodies, walkable spaces and community-centric design that allows families to transition gently into urban-style living without losing the openness and warmth traditionally associated with Sri Lankan homes. It serves a fundamentally different customer mindset compared to high-rise Colombo living.
Inoke: From a performance standpoint, VIMAN has validated that positioning very strongly. Out of the 266 units launched across the first three phases, more than 85% have already been sold, and the fourth phase has gone to market with a further 152 units. Importantly, a significant proportion of buyers intend to occupy their homes rather than purely invest, which reinforces the original ambition of building a living, breathing community rather than a transient investor-driven development. That balance between livability, affordability at scale and long-term community creation is what truly differentiates VIMAN.
“With each project, the aim has been to pioneer something new and offer buyers a distinctive product. Delivering that level of innovation has become a point of pride for the team.”
How did the foreign-buyer segment, including overseas Sri Lankans, change during the economic crisis, and what does its trajectory look like now?
Inoke: Foreign buyers, especially Sri Lankan expatriates, remain central to the market. Around half of Monarch’s early buyers were overseas Sri Lankans, many returning for later projects, reflecting strong trust and ongoing demand for both investment and retirement living in Sri Lanka.
Nayana: The bigger shift is domestic. Expat buyers now make up only about 25–30% of demand, with locals driving growth as more Sri Lankans see condominiums as a first-choice home, reshaping future demand.
What stands out about VIMAN buyers’ aspirations, and what kind of proposition do they see in the project?
Inoke: Many VIMAN buyers are motivated by nostalgia and want their children to grow up with the outdoor freedom they once had. The project’s central garden and open spaces meet that aspiration, offering a safe, rare environment where children can play and families can live more openly.
VIMAN – John Keells Properties’ First Suburban Development
Nayana: Beyond nostalgia, VIMAN is attracting a new wave of first-time buyers with no prior link to John Keells. They are drawn to its mix of community, open space and Sri Lankan character. Many come from outside Colombo, signalling wider regional demand and a shift towards thoughtfully designed, medium-density living.
Which parts of Colombo’s improving connectivity are likely to unlock the next pockets of housing demand?
Inoke: Connectivity is a major advantage for VIMAN. The Port Access Highway connects Ja Ela to Colombo faster than suburbs such as Battaramulla, which can take 45 minutes to an hour, strengthening the project’s appeal.
Nayana: Commutes should be measured in time, not distance. As new infrastructure arrives, travel times shift and places that seem farther in kilometres become effectively closer. Rail will matter later, but for now, expressways drive value. The northern corridor from Colombo to Ja Ela and Negombo is already benefiting, and future housing demand will follow corridors where connectivity is most certain.
What opportunities look most attractive for John Keells Properties in the coming years, and what direction will the next phase of development take?
Nayana: We remain highly optimistic about the road ahead. Our portfolio today is deliberately balanced across three distinct segments: super luxury through City of Dreams, core urban high-density living through TRI-ZEN, and medium-density suburban living through VIMAN. Looking ahead, we see significant opportunity across all three tiers, with new projects planned that will continue to push the market forward and help shape the future of urban living in Sri Lanka.
Inoke: The latest sector reports show condominium prices up about 12.5% year on year and volumes up roughly 44% in the second quarter. Rising prices and higher transactions signal a strong condominium market, which underpins our growth plans for the next phase.
How does the idea of “Creating New Worlds” translate from a tagline into the way you actually plan and deliver projects?
Nayana: For us, “Creating New Worlds” is not a slogan; it is fundamentally why we do what we do. When you have the canvas of a group like John Keells, the question is never “how do we put up another concrete box,” but “how do we use this project to shift what urban living in Sri Lanka can be.” That mindset forces you to think in terms of transformative change, not incremental improvement.
Practically, it means we are always thinking several years ahead and designing backwards from what the next phase of urban living will demand. At Cinnamon Life in City of Dreams, that vision is about Sri Lanka announcing itself on the world stage, with tourism, entertainment, offices and homes layered into a single integrated environment. At TRI-ZEN, it is about Colombo lifestyle 2.0—a hyper-efficient core-urban community where people who work in the city can also afford to live in the city, with services and amenities structured around that reality. At VIMAN, it is about a different kind of new world, one that draws on Sri Lankan village life, open space and community, and translates that into a modern, medium-density suburb.
“For us, ‘Creating New Worlds’ is not a slogan; it is fundamentally why we do what we do. When you have the canvas of a group like John Keells, the question is never ‘how do we put up another concrete box’ but ‘how do we use this project to shift what urban living in Sri Lanka can be.’”
It also means we do not think of ourselves as building projects; we think of ourselves as building communities. We work at a scale that allows us to curate a complete experience around the apartments, from public spaces and greenery to movement systems, services and everyday rituals of life. When you do that consistently over time, the “new worlds” you create do not just change how individual residents live; they begin to punctuate and reshape the city itself.
At the heart of this is a group of people united by a shared sense of purpose, because meaningful change is ultimately shaped by people.