Current value of bare land is Rs. 506 b with each perch valued at Rs. 7 m
Value set to rise to a trillion within 2-3 years with infrastructure development
All 269 ha of reclaimed land for Port City vested with UDA this week
The reclaimed land that makes up the Port City Colombo would be worth more than a trillion rupees within the next two to three years, Minister of Megapolis and Western Development Champika Ranawaka said yesterday.
He said at the present market value of the bare land is valued at Rs. 506 billion but with infrastructure development, such as roads, sewage, electricity and water supplies, the price would hit a trillion.
“We can only sell 179 hectares of the land and if you take the present value of a perch at Rs. 7 million, it will come to over Rs. 500 billion but this price will go up with the infrastructure development,” the Minister said at a press briefing.
Ranawaka said the Urban Development Authority (UDA) which up to 2015 had been giving out State land free of change will be able to contribute significantly to the economy.
“With the Port City, the asset base of the UDA will become one of the biggest for a State institution after the State banks,” he said.
Earlier this week, according to an agreement reached between the Government and CHEC Port City Colombo, all 269 hectares of reclaimed land was transferred to the UDA with the Government retaining full ownership of the land, with 91 acres for public use, 62 acres of commercial use, and 116 acres to be leased by the UDA to CHEC Port City Colombo, on a 99-year lease for further development.
Ranawaka said that the revised Port City agreement has done away with some of the clause that were detrimental to the country and would benefit Sri Lanka greatly
“There were fears that the Port City would be a place for casinos, car races and brothel houses, but none of that will happen. The car racing track that was mooted in the original agreement has been replaced with a boulevard where members of the public can go to spend their leisure time,” the Minister said.
The three immediate investments will be on the setting up of an international school, international hospital and an international convention hall. “We are calling for international bids from investors for these projects,” he said.
Ranawaka said that the maintenance work on the Port City will be done by a private company and the Government would not be burdened with maintenance work while the feasibility studies will be strictly implemented to ensure that the environment is not harmed in any way.
“Colombo is one of the cleanest cities in South Asia, which is a big advantage. This will attack many investors,” he said.
(FT)