Sri Lanka to draw FDIs exceeding US$ 500 mn

By Chandeepa Wettasinghe
Despite a poor track record in attracting foreign direct investments during the last two years, a top government official yesterday said several projects around the Beira Lake area totalling over US$ 500 million are now starting to gain traction.
Board of Investments Chairman Upul Jayasuriya said that India’s Krrish Group, which is constructing the Krrish Square, has now made all payments, and the project is going ahead.
The Krrish Group had made numerous delays in payments to the Sri Lankan government in recent years.
Jayasuriya further said that the area which was to become a casino strip under the Rajapaksa regime, has now drawn new investment proposals.
“The first is a hotel by Asia Capital with US$ 200 million opposite Lake House,” he said.
Jayasuriya said that Asia Capital has now bought the land from global casino giant Crown, owned by James Packer, who halted his plans for Sri Lanka, after the UNP, while in Opposition, rallied the public to stop the construction of new casinos in Sri Lanka.
“I think they are all working together; the old owners and the new owners. They’re serious now,” Jayasuriya said.
Asia Capital has significant ties to Japanese parties as well.
“The second is Pico. They’re willing to invest about US$ 75-100 million to set up a convention centre and mixed development,” Jayasuriya said.
Pico Far East Holdings Limited, a Hong Kong-based global event management giant that owns the Sri Lanka Exhibition and Convention Centre adjacent to Asia Capital’s new property, has just 3 years left in its 25 year lease.
“The third is C. W. Mackie with a mixed development of US$ 200 million,” Jayasuriya said.

C. W. Mackie appears to be expanding rapidly, as it this week announced that it would be investing Rs. 1.1 billion on a fruit-based beverage manufacturing factory in the near future.
Meanwhile, Jayasuriya also confirmed that Singapore’s popular retailer Mustafa will be investing US$ 200 million on a mixed development project, which will have 1,001 apartments, a hotel, and a shopping mall, in Kotahena.
“We signed a new agreement with a condition to immediately bring in US$ 10 million, which they (Mustafa) did,” he said.
Access Engineering PLC and China Harbour Engineering Lanka are also said to be investing in the project.
However, most projects in Sri Lanka have been delayed in the recent past. Jayasuriya said that environmental issues, public harassment and administrative weaknesses have been the main reasons for delays.