Plots of land in the Colombo Port City have been allocated for foreign investors, but it is reported that only six plots have been acquired by the investors so far.
“74 plots in the port city have been reserved for investors and so far no investor has come forward for 68 plots,” the local media in Colombo citing reliable sources has reported.
The investors, unfortunately, who are currently reinvigorated for six plots have not been able to start their desired development activities due to the legal regulations related to the city not yet being implemented.
Sri Lanka, however, is offering 40 years of tax relief to investors in its China-built port after the project failed to attract any foreign interest after nearly 12 months of operations.
With the global economic downturn, attracting investment to Colombo’s Port City has become increasingly difficult, Minister for Mass Media and Cabinet spokesman Bandula Gunawardana said.
He said in a statement recently that Oman, for example, has offered tax breaks in its ports to attract industries and businesses.
“Attracting investors is a challenge while local investors in the country are moving to countries such as Bangladesh, Ethiopia and Kenya due to favourable investment opportunities,” he said.
Operated as a Chinese-Sri Lankan joint venture, Colombo Port City has an area of 269 hectares.