Sri Lankan government to sign agreement for US$ 250 million FDI in end January
The government of Sri Lanka has reportedly stated that plans were proceeding swiftly on the US$ 250 million mixed development project, which is the first Foreign Direct Investment (FDI) project for the new administration, with the agreement likely to be signed on 31 January.
Sri Lanka’s State Minister of Communication Technology Lakshman Yapa Abeywardena has told the local media that the plot of land for the project was valued at about Rs 7.8 billion, and Rs. 1.85 billion has already been paid to the Sri Lankan government by the investor.
Accordingly, the investment will be made on a state-owned plot of land located near the Beira Lake at Baladaksha Mawatha in Colombo 7, by Perennial Real Estate Holdings.
“The agreement will be signed once the investor makes the balance payment of Rs. 5.9 billion. They have agreed to make the payment by 31 January. The process will be transparent, and there will be no hidden agendas,” Abeywardena has told the media.
The project consists of a 30-storey commercial tower with 700 new apartments and will also have facilities for retail and food outlets.
While the initial proposal was to set up a 200-room hotel, 150 residencies, and a shopping complex, with a project implementation period of four years, the proposal was revised in January 2018 to have apartments, commercial retail space, and a mall, with project implementation extended to six years.
According to Abeywardena, the investor would have to start construction by end April, once the agreement is signed.
OSL take:
Foreign direct investments flowing in to the country are on the increase and Sri Lanka’s overall economic activities are also on the rise along with the expansion of business/investment opportunities in the country for foreign businesses/investors. 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.
| Article Code : | VBS/AT/20200113/Z_2 |