Sri Lanka to help CHEC Port City raise loan

ECONOMYNEXT – Sri Lanka’s government will become a signatory to a long term loan sought by CHEC Port City, a firm that has reclaimed 269 hectares of sea off Colombo, from China Development Bank, the state information office said.

Sri Lanka’s cabinet of ministers had given the go ahead for the Megapolis and Western Development Ministry to sign a loan agreement with CHEC Port City (Pvt) Ltd and the CDB.

The use of the proceeds of the loan was not specified. CHEC Port City was expected to build some infrastructure including a tunnel to access the reclaimed area and ease congestion in Colombo.

Under a tripartite agreement signed between CHEC Port City, Megapolis Ministry and the Urban Development Authority, Sri Lanka was expected to support CHEC Port City’s borrowings.

CHEC Port City has reclaimed 269 acres of sea, and the land is owned by the state. A part of the usable land will be leased back to the firm for re-sale to investors and recover its investment in reclamation.

Sri Lanka’s government will also sell its share of land to investors. There are also common areas including a park and channel. (Colombo/May02/2019-SB)

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