The Hon. Ruwanthilaka Jayakody

Hon. Presiding Member, today we are discussing the Institute of Real Estate Professionals of Sri Lanka Bill and two other Bills for approval. I wish to express some views on this Bill, the responsibilities of professionals engaged in the field, and the need for a framework. First, what do we mean by real property? It includes both natural and man-made immovable assets such as water, trees, minerals, buildings, houses, boundary walls and fences, and bridges; in general, land and permanent improvements attached to land. Typically, buildings and houses come under this. In commerce, real property transactions include sale, leasing, and purchase. With the expansion of private property ownership, the real estate sector has grown rapidly. Entering this sector requires substantial investment. Each property has a unique set of characteristics, hence standardization becomes necessary. In Sri Lanka’s capital markets too, the real estate sector plays a significant role. If we take the condominium market, data from the Central Bank and the Department of Census and Statistics show a notable increase by the third quarter of 2025. Taking 2017 as a base of 100, the condominium index has risen to around 265 by 2025—a significant growth. Likewise, in the land market, taking 2019 as 100, it has increased to about 197 by 2025. This indicates a fast-growing real estate market. Given this, for planning, investing in, developing, managing, supervising, monitoring, and appraising real estate projects, we need a public institutional framework. It is also clear that in recent times real estate has at times been used as a vehicle for money laundering. Therefore, we need an institute, and this Bill seeks to establish one—primarily to safeguard the dignity and standards of these professionals. Previously, the related body was the Institute of Real Estate and Valuation, registered under the Companies Act. Comparable professional bodies—the Bar Association of Sri Lanka, the Institute of Chartered Accountants of Sri Lanka, the Government Valuation Department, and the Survey Department—operate under legal frameworks in service to the public, with corresponding responsibilities and accountability. You will recall that many professionals who served under previous governments later supported this Government, joining through national professional organizations, because there was a clear need to correct irregular practices and protect the public from injustices caused by some institutions. For example, the Survey Department is the lead in cadastral and land surveying. If members of the public suffer injustices in land measurement, they can complain to the Survey Department, which conducts disciplinary inquiries and imposes sanctions—up to and including suspension of survey licences for a period—to protect public rights. Likewise, this Bill protects the dignity of professionals as they pursue their profession and enables them, as a unified body, to better serve the people. As with the Bar Association—where the public can complain about misconduct by lawyers, leading to inquiries and even suspension—other institutions like the Institution of Engineers and the Government Valuation Department also enforce professional standards, thereby protecting both professionals and the public. Accordingly, we see this Institute of Real Estate Professionals of Sri Lanka Bill as an important step. Its primary objectives are to uplift and advance the dignity and reputation of real estate professionals, to promote policies, professional methods, standards, and practices relevant to the real estate industry in Sri Lanka, and to protect the professional status of its members when needed. Some in society attempted to create the notion of a conflict between the Institute of Valuers of Sri Lanka and the proposed Institute of Real Estate Professionals. There were disagreements on certain matters. Our Deputy Minister and Minister Anura Karunathilaka engaged extensively, leading to agreed amendments. With those incorporated, we are proceeding to pass this Bill today. Even with good legislation, issues can arise, but they can be discussed and resolved. The aim is to protect the profession and create institutions necessary for national development. The President has clearly emphasized that the rule of law is fundamental to development. Therefore, a legal framework for these professionals is essential. This process provides strength and consensus for all professionals and society at large to work together. Passing this Bill will help lay the foundation to protect both professional rights and public rights. Thank you very much.