Sri Lanka will sign US$ 2 billion worth Foreign Direct Investment (FDI) deals, including a US$1.3 billion deal with China Communications Construction Co Ltd.to build a port city, reports say.
These projects are to receive tax relief, the Minister added.
Along with the port city, Sri Lanka will sign two mixed development projects totaling $700 million on Thursday, Investment Promotion Minister Lakshman Yapa Abeywardana has said.
As part of the latest deals, the US$ 1.3 billion 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.
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.
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 for public usage and the State-run Sri Lanka Ports Authority respectively.
The land will be given to the Chinese company on a 99-year lease.
Meanwhile, Australia’s Property Alliance Capital 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 Colombo.
Also, a deal has been signed with the China Harbour Engineering Co. to build two hotels and a golf course in Hambantota and Katunayaka, in an investment of over US$ 500 million.
The golf course will be situated in Hambantota together with the 250 room hotel in Mattala, Airport and Aviation Services Ltd. (AASL) Executive Director Johann Jayaratne has told media.
In addition, a duty free shopping mall would be built here, he had added.
A 200 room hotel in Katunayake to be built under this deal would also include a a duty free shopping mall and a car park facilitating 1000 vehicles, reports say.