Sri Lanka’s Finance Ministry says Cabinet approved US$ 250 million mixed development project
The Finance Ministry of Sri Lanka has announced that the Cabinet of Ministers had granted approval to a US$ 250 million mixed development project, which will the new government’s first foreign direct investment (FDI).
In a statement Finance Ministry has stated that the first foreign investment under the new government of President Gotabaya Rajapaksa will be launched shortly.
This investment will be made on a plot of land located between the Beira Lake and Shangri-La Hotel on a state owned land at Baladaksha Mawatha in Colombo by a foreign investor called Perennial Real Estate Holdings.
This is a US$ 250 million foreign investment project that will see the construction of a 30-storey commercial tower inclusive of 700 new residencies. In addition it will also have facilities for retail and food outlets.
The Cabinet of Ministers has reportedly approved the proposal made by Sri Lanka’s Prime Minister Mahinda Rajapaksa as the Minister of Finance, Economy and Policy Development to facilitate investment activities for the relevant company.
The signing of the agreement is expected to take place soon and the land for the project will be leased out to the company and the government of Sri Lanka is to receive US$ 43 million as the payment for the lease.
OSL take:
The government of Sri Lanka has given priority to attracting foreign investments to the country. Investors to certain key economic sectors have been granted incentives to encourage their investments. Also, Sri Lanka’s geographical positioning in the Indian Ocean, the ease of doing business environment in the country and the many trade agreements as well as trade concessions enjoyed by the country have made it an attractive business destination in the South Asian region. Therefore, foreign businesses/investors could explore opportunities in Sri Lanka.
| Article Code : | VBS/AT/20200106/Z_1 |