Sri Lankan government recommences US$ 100 million stalled mixed development project
The government of Sri Lanka has reportedly re-commenced a US$ 100 million mixed development project titled ‘Destiny’ as part of its effort to fast track incomplete projects. The project expects to see 300 apartments completed by the year end.
Secretary of Sri Lanka’s Urban Development and Housing Ministry Secretary Sirinimal Perera has reportedly said that Sri Lanka’s construction industry had failed to thrive during the past few years and when the incumbent administration came into power there were many incomplete projects that investors were desperate to see finished.
As part of the programme, the first building selected was the Destiny mixed development project that was started with Pakistani investment in 2012 near the Slave Island train station.
In the initial project Destiny was to have two towers of 876 apartments, according to the Ministry, however despite about 500 apartments being pre-sold the investment stalled after 2014, Daily FT has reported.
“There have been many complaints from different quarters about these projects and we are working to complete them and restore confidence in the industry. We also want to benefit construction companies and assist them to complete their work on schedule,” Perera has been quoted as saying at the ceremony held to restart work.
The land was given for the project by the Urban Development Authority (UDA) and a new agreement was signed between Imperial Builders and MAGA Engineering to complete the project in its entirety within two years. The first stage of 300 apartments in Destiny tower I is expected to be completed by December.
OSL take:
Sri Lanka’s development programme that was stalled last year due to the challenges of the global Covid 19 pandemic has recommenced now with much vigour. The recommencement of the stalled mixed development project is one such endeavour. This has opened up new business/investment opportunities in Sri Lanka’s development programme. Sri Lanka’s attraction as a business/investment destination in the South Asian region given the country’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country. Foreign businesses/investors could therefore explore the growing business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/20210126/Z_2 |