by Our Correspondent in Colombo
Officials of the Colombo Port City Economic Commission have told Parliament’s Committee on Public Finance that nine plots of land near Colombo’s main commercial zone, valued at US$1.12 billion, have been leased to promote investment, with plans under way to lease six additional plots worth US$1 billion.
The officials said the commission was also preparing to bring four plots of state-owned land to the market. Those plots account for one-seventh of the total land allocation, according to information presented to the committee.
So far, the only land plots leased are those belonging to CHEC Port City Colombo (Pvt) Ltd, the officials said. The leases are granted for a period of 99 years, with the average land value estimated at US$3,000 per square metre.
The commission has received approximately Rs400 million from the transactions, equivalent to 1 per cent of the total lease payments, officials told the committee. The figures were presented during a review of the commission’s land transactions and its role in promoting investment in the Port City development.
The planned leasing of six additional plots, valued at US$1 billion, would expand the scale of land made available for investment. The proposed market offering of four state-owned plots would also bring government land into the process, although the officials did not provide further details about the timing of the planned transactions in the information presented to the committee.
The committee also examined the regulatory arrangements governing companies investing in the Port City, focusing on the identification of beneficial owners, transparency in foreign investment and measures to prevent money laundering and the financing of terrorism.
Beneficial ownership disclosure is among the matters under scrutiny as authorities seek to establish the identities of those who ultimately own or control companies operating within the development. The committee sought information on the mechanisms in place to identify such ownership and ensure that foreign investment activities comply with the relevant regulatory requirements.
The discussions also covered the procedures for recommending visas for foreign workers and monitoring their activities in the Port City. Information presented to the committee indicated that approximately 14,300 visas had been issued to foreign nationals on the commission’s recommendations.
The volume of visas prompted the committee to consider whether the commission had the practical capacity to monitor the activities of the foreign nationals concerned. The discussion focused on the commission’s role in issuing visa recommendations and the arrangements available to oversee those entering the development for work.
The committee’s examination therefore covered both the commercial terms of the Port City’s land leases and the regulatory responsibilities associated with attracting foreign investors and workers. Officials provided details of the nine existing leases, the six additional plots planned for leasing and the four state-owned plots being prepared for the market, alongside information on visa recommendations and oversight.
The commission’s figures indicate that the nine plots already leased have a combined stated value of US$1.12 billion, while the six plots planned for future leasing are valued at a further US$1 billion. All existing leases identified by the officials involve land belonging to CHEC Port City Colombo (Pvt) Ltd, and each lease runs for 99 years.
