The Häfele Group reaffirmed its confidence in the Sri Lankan property development market and stated that there were no issues with the collection of dues from developers. The company will continue to do business in Sri Lanka which is identified as the strongest property development market in the region. The company is concerned with import restrictions which it sees as an essential input into property development.
Hafele Managing Director South Asia Jurgen Wolf said, “Sri Lanka is actually the leading country in terms of getting our money in (repayment). It improves year on year. We have no concern in Sri Lanka.”
Wolf complained that Indian developers were using the COVID-19 pandemic to delay on payment. Wolf suggested that Lankan firms could get extensions on credit if required.
Wolf was speaking to the German Chamber of Industry and Commerce in Sri Lanka on 30 September. Hafele is a major provider of high-end goods for furniture fittings and architectural hardware. Hafele sees their involvement as being part of a product that is manufactured in Sri Lanka. He said, “we are not selling furniture products but are part of a solution manufactured in Sri Lanka.”
High-end property in Sri Lanka is targeted to be sold to foreign buyers. Hafele views its products as an integral part of a high-end property offering. None of the Hafele serviced projects have faced major issues with the recent import restrictions as developers have been able to clear goods on a case by case approval basis.
The importation of sinks has been an issue of contention. Hafele noted that the country has already shown signs of recovery with a large growth in exports and that there was scope to reduce import restrictions which were justified given the fallout caused by COVID-19.
Hafele has a 24-hour service hotline in Sri Lanka and works through over 150 partners. The company has over 50 employees in the country.
