The Colombo Port City, the country’s first multi-service special economic zone is poised for more foreign direct investments (FDIs) in the coming years according to a top official of CHEC Port City Colombo Ltd., the project company of Port City Colombo.
Sri Lanka is certainly recovering and there has been renewed interest shown by investors towards the Port City project, said Deputy Managing Director, CHEC Port City Colombo Ltd., Thulci Aluwihare.
He said the current macro-economic indicators are favourable for foreign direct investments. However, sticking to the IMF’s fiscal consolidation plan and improving confidence in the country are crucial to attract FDIs, he said.
Outlining the five-year role out plan which Aluwihare said may have to be extended to 2030 due to the economic crisis, is now coming into fruition with the ground-breaking for Marina Development on four land plots last month and the signing for a residential development project next to Marina Development on 1.4 hectares two weeks ago.
The five-year roll out plan was originally planned for 2023-2028.
As per the five-year roll out plan, CHEC Port City has identified future developments that are expected to draw over US$ 5 billion in FDIs for 60 hectares.
The project has got investments to the tune of US$ 200 million, with around US$ 100 million promised by China to develop a convention and exhibition centre as pledged by China during the visit of President Anura Kumara Dissanayake last month.
“Besides the Marina Development investments on an international school, university and a hospital are in the pipeline with the groundbreaking expected before the end of the year,” Aluwihare said.
All in all, total investments he said from the identified investors in the next three to four years would be between US$ 450-500 million,” Aluwihare said.
About the regulatory environment for businesses he said all regulations of the Port City Colombo have been duly passed including the offshore banking regulations.
“As of end 2024 we have 140 companies and we are targeting around 300 by the end of this year,” Aluwihare said adding that all companies have to be licensed and registered by the Port City Economic Commission to operate in Port City Colombo.
Companies have to raise the doing business capital offshore to operate in the Port City, and they must earn in foreign currency by exporting services.
“No company could ‘lift and shift’ operations to the Port City. An existing business cannot be moved to the Port City. It has to be a new business,” he said.
On the role of the project company, Aluwihare said CHEC Port City Colombo had invested US$1.4 billion in FDIs to reclaim land and develop all the internal infrastructure an added that the CHEC Port City has a leasehold right to monitise its investments. CHEC Port City Colombo is a 100%-owned subsidiary of China Harbour Engineering Company, the promoter investor and project developer of the Port City Colombo.
The Colombo Port City spanning 269 hectares of reclaimed is the largest Public-Private Partnership in Sri Lanka to date, with a commitment of USD 1.4 billion investment.
Its vision is to be a world-class focal point attracting international business and talent, by promoting information technology, financial services, maritime, professional services and tourism.
When completed, the Port City will have over 6.3 million square metres of built space with world-class office, retail and residential facilities.
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