The Sri Lanka Retailers’ Association (SLRA), the apex body for organised retail in Sri Lanka, is urging all landlords and lessors to reduce leases and rentals for its membership.

SLRA President Sidath Kodikara appealed landlords to provide a 50% concession on rentals/ leases for the next six months on properties leased and rented by SLRA members, as many retailers are suffering losses due to the prevailing situation in the country caused by the COVID-19.

“The ongoing Lockdown has drastically limited all retailers’ ability to operate their respective outlets. Thus, resulting in more than an 85% drop in revenues across all retail establishments and sectors. This significant drop in revenue has resulted in losses for all retailers; and currently all our membership is struggling to stay afloat,” he said.

Given the challenges, retailers are in urgent need to cut operating costs, of which a significant component is the lease rental.

“We make this request fully understanding the impact this may have on landlords or lessors. However, this is an urgent need for retail industry -an industry which employs more than 15% of the work force,” he further added.

However,  owners of one popular shopping complex, Majestic City, owned by C.T. Land Development PLC have already announced concessions on rentals for their tenants.

In a disclosure to Colombo Stock Exchange on 30 April 2020, CT Land Development PLC Chairman/Managing Director J.C. Page revealed that they will implement a rental-free policy other than for the electricity consumed inside the shop during the curfew period.

“We would also be taking into consideration the adverse economic impact of the closure on our tenants and will formulate a rental-free/reduced rental scheme for a further period until such time as the mall is fully reopened,” he said.

The firm closed the Majestic City mall with effect from March 17, as an urgent preventive measure to control the spread of the COVID-19 pandemic in the country.

However, Page noted that the assurance as given above to tenants of the complex will result in a substantial adverse impact on the company’s revenue and profitability for the year ended 31st March 2020 and continue onto the year ending 31st March 2021.

The Majestic City tenants are also yet to fully recover from the adverse impact of the Easter Sunday attacks last year.

The SLRA currently represents 9 sectors in the retail industry namely FMCG; Clothing, Fashion & Jewelry; Shelter & Housing; Household & Consumer Durables; Footwear & Accessories; E-Commerce; Mobility; Entertainment, Restaurant and QSR; Healthcare & Wellness.