Tripartite agreement signed for Colombo International Financial City

Tripartite agreement signed for Colombo International Financial City

Tripartite agreement signed for Colombo International Financial City

Written by Tharushan Fernando

12 Aug, 2016 | 9:43 pm

The Government of Sri Lanka signed a tripartite agreement for the Colombo International Financial City

The new agreement replaces the previous agreement signed by the former government to construct the port city. Under the new agreement, President Maithripala Sirisena is to declare 269 hectares as territory of Sri Lanka under the Lands Ordinance.

The Ministry of Megapolis and Western Development, the Urban Development Authority and the project company signed the agreement today.The Financial City will be governed under a new act titled the Colombo International Financial Centre Law, while the act envisages the creation of an International Financial Zone. The zone hopes to attract the international financial services industry.

The Ministry of Megapolis and Western Development states that the new agreement encompasses a number of benefits in comparison to the previous port city agreement.

According to a media release sent by the Ministry of Megapolis and Western Development, the project company will not be granted any freehold land and the land will be given on a lease period of over 99 years.

The entire reclaimed area of 269 hectares will be first declared as territory of Sri Lanka under the Lands Ordinance.  Thereafter, the reclaimed area will be declared as an area of authority under the UDA Act and/or the proposed CIFC Law. The lands used for public purposes such as roads, parks, pedestrian walkways has been increased by 44% from 63 ha to 91 ha.

A land area of 269 hectares is to be reclaimed as per the new agreement, an addition of 36 hectares as per the previous agreement of 2014, while another 91 hectares has been allocated for public use. Forty five (45) more hectares have also been allocated for public use which is eight times more than what is available at Galle Face Green. In addition, the project will create 13 hectares of beach areas also for public use.

According to the agreement, the previous agreement placed the entire burden of providing utility and infrastructure connections to the periphery of the reclaimed area on the government.

Under the new agreement however, the project company and a party to be nominated by the government will undertake the estate management responsibility on a self-financing basis.

The media release further states that, as a gesture of goodwill generated after the visits to China by His Excellency the President and the Hon. Prime Minister, the project company has already issued the required written undertakings to withdraw all compensation claims submitted to the government thus far, effective from the signing of the new tripartite agreement.

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