By The Pulseline News Desk
Five proposed developments at Colombo Port City, including a private hospital, an educational facility and an integrated resort, have been withdrawn, while investments in nine leased land parcels have reached US$1.12 billion, the Colombo Port City Economic Commission (CPCEC) has informed Parliament.
CPCEC Director General Revan Wickramasuriya has disclosed the withdrawals before the Committee on Public Finance (CoPF), explaining that five of 10 previously proposed projects had dropped out, while the remaining five continued to operate.
The withdrawn projects include a proposed Asiri Hospital, an educational facility by Gateway and a mixed-use development by Clothespin Management and Development.
Universal Entertainment Colombo, another prospective investor, has withdrawn during the due diligence process for a 10-hectare plot earmarked for an integrated resort.
Wickramasuriya has said the company had initially considered the integrated resort project but subsequently decided to withdraw during its due diligence.
The withdrawals highlight the challenges in converting investment proposals at Colombo Port City into operational developments, despite the Government’s efforts to position the project as a regional business and financial hub.
US$1.12 billion in primary investments
Despite the withdrawals, primary investments across nine leased land parcels have reached US$1.12 billion, according to the commission.
Lease agreements have been executed and completed for two residential plots, two mixed-use developments, a marina plot and a hotel plot.
CPCEC Chairman Harsha Amarasekera has outlined progress on several developments, saying construction activities had commenced at multiple sites.
The marina project has started, while piling work has begun for the Colombo International Financial Centre (CIFC), developed by Ceylon Real Estate Holdings.
ICC Port City Colombo’s Bay 1 development has reached the first-floor stage, while piling is underway at Home Lands and Prime Melwa Project 1.
However, the Marina Hotel, another development with a signed agreement, has yet to commence construction.
Residential construction by ICC Port City is also underway.
CIFC positioned as flagship development
The Colombo International Financial Centre (CIFC) is among the major developments expected to support Port City’s ambition to attract international businesses and financial services.
The first phase represents an investment of US$515 million and is designed as a 160,000-square-metre mixed-use development incorporating premium office space, luxury residences and a retail podium.
The project is intended to contribute to the development of a business district capable of attracting regional and international companies.
Its progress, alongside other construction activity across Port City, will be important in determining how quickly the reclaimed land is transformed into an operating commercial and residential hub.
Further US$1 billion in investments targeted
The CPCEC is targeting a further US$1 billion in pipeline investments over the next 12 months, with a focus on attracting businesses and developments close to the country’s central business district.
Colombo Port City comprises 118 land parcels, with different arrangements for marketing and ownership.
China-backed CHEC Port City Colombo is expected to market 48 parcels, while the Government will offer 28 parcels for sale and retain common areas.
The commission’s investment target comes as it seeks to expand development activity beyond the projects already under construction and attract further private capital.
The withdrawal of five proposed ventures, however, underscores the distinction between initial investor interest and projects that progress through due diligence, contractual arrangements and construction.
The ability to convert the remaining investment pipeline into completed developments will be a key factor in determining whether Colombo Port City can fulfil its longer-term ambition of becoming a regional financial and commercial hub.
Leave a comment