China to invest US$ 1 billion to construct three 60-storey buildings in mega project in Sri Lanka
China is to invest US$ 1 billion in the construction of three 60-storey buildings at a mega-project near Sri Lanka’s main port, Colombo said Tuesday, as Beijing aims to boost its influence in the Indian Ocean, AFP news agency has reported.
The deal reportedly follows an earlier Chinese investment of US$ 1.4 billion to carry out reclamation work for the wider Colombo International Financial City development, strategically located next to Sri Lanka’s harbour, the only deep sea container port in the region.
The countries hope the project, initiated by former Sri Lankan President Mahinda Rajapakse, will create a financial centre in the Indian Ocean comparable with those in Singapore and Europe, drawing billions in foreign investment and thousands of jobs.
Sri Lankan officials have said 60 percent of the 269 hectare (672 acre) reclamation, due to finish next year complete with yacht marina, had already been completed.
No completion date was given for the buildings, the first for the development.
“China Harbour (company) will put in $1 billion to build three buildings,” Sri Lanka’s Urban Development Minister Champika Ranawaka has told reporters in the capital.
“These three 60-storey buildings will be able to attract more foreign companies into Sri Lanka.”
The report states that Colombo is a key hub for Indian import-export cargo. Beijing has been accused of seeking to develop facilities around the Indian Ocean in a “string of pearls” strategy to counter the rise of its rival and secure its own economic interests.
Sri Lankan Prime Minister Ranil Wickremesinghe visited the site Tuesday to inspect the progress of reclamation.
“We will shortly have legislation to turn this area into a financial centre like in Europe or Singapore,” he has been quoted as saying.
The CCCC has said it expects the project to create 83,000 new jobs and help Sri Lanka attract another US$ 13 billion in direct foreign investment to develop infrastructure.
OSL take:
The large scale investments in Sri Lanka by the Chinese on the mega Colombo Financial City project has opened up many investment opportunities for local as well as foreign investors. Apart from investment opportunities in the project, interested entrepreneurs could also look at the opportunities to supply goods and services for these projects.
| Article Code : | VBS/AT/20180103/Z-1 |