Sri Lanka withdraws freehold land offer to Chinese developers
Sri Lanka withdraws freehold land offer to Chinese developers
China’s grand plans for Colombo’s port continue, but only with a 99 year lease
Sri Lanka announced this week that permission for a Chinese company to buy 20 hectares of reclaimed land alongside the port in Colombo as freehold, has been withdrawn. Instead, it will grant the state owned company a 99 year lease, as per a new agreement.
The changes to the $1.4 billion proposal took place following strong objections from India.
“India had a big concern about giving freehold land to China near the Colombo harbour,” government spokesman Rajitha Senaratne said, reports Yahoo News.
The project was launched by Chinese President Xi Jinping on a state visit in 2014, and is being funded by China Communications Construction Company. The plans would create a city within a city, inclusive of housing facilitates, a Formula One racetrack and a marina. It would add 269 hectares (672 acres) of real estate to Colombo.
More: A fight to control China’s biggest developer just got more interesting
The reclamation is the largest ever single foreign investment in Sri Lanka. Once completed the Chinese will own 108 hectares (266 acres) on a 99 year lease. Previously, 20 hectares of this was to be freehold.
Concerns have been raised over whether the port is part of China’s plan to boost its influence in the Indian ocean.
China is Sri Lanka’s biggest lender and has been vital in terms of infrastructure investment in the country. However, Beijing has been accused of “exploiting” the island nation in the interest of securing its own economic interests and counter the rise of India.
Read next: Will India’s smart city dream ever be feasible?
Source: Property Report