The Central Bank of Sri Lanka (CBSL) has revealed how land within the Port City planned to be built on reclaimed land near the Colombo harbor would be offered to investors.

According to the 2013 CBSL Annual Report, this new city would come up on land reclaimed from near the new extended harbor’s breakwater up to the Galle Face Green.

An extent not less than 233 hectares would be reclaimed for this proposed project, the CBSL has stated.

It has also stated that an extent of 108 hectares from this reclaimed land is to be reserved for the company selected for this project, China Communications Constructions Company (CCCC) to cover its investment costs, marketing promotions costs and profits.

From the extent of land thus reserved, some 20 hectares would be on free hold right basis and the balance 88 hectares on a 99 year lease basis.

The remaining 125 hectares of this reclaimed land would be under the purview of the Sri Lanka Ports Authority (SLPA), the CBSL has stated.

The estimated cost of USD 1.3 billion for the first phase of this project is to be invested by CCCC.

The CBSL has pointed out that since the investment for this project is to be made as direct foreign investment by the investor, the government does not bear any costs or foreign borrowings on the financial aspects.

AdaderanaBiz learns that the government is to sign the agreement with the relevant investing company very soon.