Sri Lanka’s Browns and China Harbour ink deal for Port City towers
ECONOMYNEXT – Browns Investments said it had inked a deal to join China Harbour Engineering in a 450 million dollar mixed development project on reclaimed land in Sri Lanka’s capital Colombo.
The Colombo International Financial Centre styled development is to be built in two phases.
The first phase involves a Grade A office tower, a residential apartment tower, a service apartment tower and a retail podium. The five tower project was the first investment to be approved on the reclaimed Port City.
Phase one will be jointly owned and managed by Browns Investment and CHEC, through a special purpose vehicle, Browns said in a stock exchange filing. It is not clear what the Brown’s shareholding will be.
“Attracting foreign direct investment is a key priority for our Government, and this landmark project is a strong indicator that Sri Lanka is now back in business,” Prime Minister Mahinda Rajapaksa said after the agreement was signed.
“We invite investors from around the world to explore the multitude of investment opportunities that Sri Lanka presents with its strategic location and human resource capabilities.”
Sweeping tax breaks were offered to the project. It is expected to be operational in 48 months. Phase two has to be operational in 96 months.
The tax breaks could be assigned to the project companies.
The total billion dollar project was approved earlier in 2020.
White collar workers in the project could also be paid dollar salaries.