COLOMBO Nov 13 Sri Lanka will sign $2 billion
worth foreign direct investment (FDI) deals, including the $1.3
billion investment from China Communications Construction Co Ltd
to build a port city, the island nation's investment
minister said on Wednesday.
Along with the port city, Sri Lanka will sign two
mixed-development projects totalling $700 million on Thursday,
Investment Promotion Minister Lakshman Yapa Abeywardhena told
reporters in Colombo.
The realised FDI had already reached $1 billion this year
and with the start of some already signed projects, Sri Lanka
will be able to achieve its $2 billion FDI target for this year,
As part of the latest deals, Australia's Property Alliance
Capital (Pvt) Co will pump in $450 million in a mixed
development project including commercial buildings, malls,
service apartments and multi-level car parks in the heart of
Another $250 million mixed development project by Hong
Kong-based Evic International Engineering Co and Nice View
Investment Co will build a 528-unit apartment complex also in
Colombo. Both projects will be completed in five years.
The project by China Communications Construction will build
the port city on a 233 hectare site that will be reclaimed from
the sea. The deal will be signed on Thursday, the minister said.
The site is next to Sri Lanka's main port and Colombo's
historic Galle Face Green seafront. It is also close to where
Shangri-La Hotels Lanka Ltd, a subsidiary of Hong Kong-listed
Shangri-La Asia Ltd, is building a 500-room hotel.
According to the proposed deal, 108 hectares of land will be
given to the Chinese firm after the port city development, while
63 hectares and 60 hectares of land will be given to public
usage and state-run Sri Lanka Ports Authority respectively.
The land will be given to the Chinese company on a 99-year
lease and the project will be completed in eight years.
It has already created new land near the proposed port city
as part of its expansion of the Colombo port to double its
capacity by 2015.
Since the end of a nearly three-decade war in May 2009, the
Indian Ocean island nation has been spending heavily on
infrastructure, including ports and highways to attract foreign
investments to its $59 billion economy.
(Reporting by Shihar Aneez; Editing by Gopakumar Warrier)