Colombo Port City leases nine land plots worth US$1.12 billion

The Colombo Port City Economic Commission has leased nine land plots valued at a total of US$1.12 billion as part of efforts to attract investment to the development adjoining Colombo’s main commercial district.

Commission officials told the Parliamentary Committee on Public Finance that plans were also under way to lease a further six land plots valued at US$1 billion.

The Commission is also preparing to bring four government-owned land plots to the market, representing around one-seventh of the total land allocation.

The Committee, chaired by Dr Harsha de Silva, examined the Commission’s investment promotion activities, the regulation of foreign investment and related legal and administrative issues.

Officials said that, so far, only land belonging to CHEC Port City Colombo (Pvt) Ltd had been leased.

The land had been leased for 99 years at an average value of US$3,000 per square metre, they said. The Commission had received Rs. 398 million to date, equivalent to 1% of total lease payments.

The Committee also examined mechanisms to identify the beneficial owners of companies investing in Port City, improve transparency in foreign investments and prevent money laundering and terrorist financing.

Members discussed approvals granted to businesses designated as Businesses of Strategic Importance, future investment plans and the status of condominium projects in Port City.

The marketing and sale of condominium and residential properties were also discussed.

The Committee raised concerns over the protection of pre-sale deposits paid by investors intending to purchase units in residential developments.

Particular attention was given to the use of escrow accounts to ensure that money received from foreign investors is used only for the relevant projects and remains secure.

The issue of visas for foreign workers was also raised after the Committee was informed that around 14,300 visas had been issued to foreign nationals on the recommendation of the Commission.

Members questioned the practical feasibility of monitoring their activities and stressed the need to strengthen regulatory measures to prevent illegal activities within Port City and protect Sri Lanka’s international reputation.

The Committee also sought information on the actual volume of foreign investment received by Port City, the operational status of approved businesses and whether the expected employment opportunities had materialised.

Deputy Ministers Chathuranga Abeysinghe and Nishantha Jayaweera, as well as MPs Ravi Karunanayake, Harshana Rajakaruna, Shanakiyan Rajaputhiran Rasamanickam, Ajith Agalakada, M.K.M. Aslam, Nimal Palihena, Wijesiri Basnayake, Thilina Samarakoon and Champika Hettiarachchi attended the meeting.