For Negombo to Colombo LRT, mixed development projects for USD 500 mn

On Sep 13, 2021

A Memorandum of Understanding (MoU) was signed between KCI Metro Link Korea Company Ltd and the GBK Consortium Ltd of the Republic of Korea to conduct feasibility study to construct an LRT line from Negombo to Colombo (via Bandaranaike International Airport) as well as several other a mixed development projects.

This Consortium is to utilize approximately USD 500 million concessionary loan of the Korean EXIM Bank for these projects in Sri Lanka.

The MoU was signed between Dr. Parimalam Rajo Isa Michael, President of KCI Metro Link Korea Company Ltd and Dr. Byung Chun Shin, CEO of GBK Consortium Ltd last week in the presence of the Ambassador of Sri Lanka to the Republic of Korea, Dr. A. Saj U. Mendis and was attended by over 15 members of the Consortium.

Dr. Michael speaking EXCLUSIVELY to Daily News Business from Korea said that some of the key projects under this agreement are the Negomabo Colombo Rail Link, Ja-Ela Mixed Development on a two acre land, Export Village and Export Oriented Warehouse in Ekala, 150 acre Theme Park in Bopitiya, Hotel and Leisure Park in Bopitiya, Ragama Medical Village and City and a City Hotel in Negombo.

These mega projects could transform the entire sphere of connectivity in the Colombo District, thus establishing greater connectivity between and among cities and villages in the District.

This mega development project could elevate the District of Colombo as one of the more efficient and connected districts not only in South Asia but in the entire Continent of Asia.

Ambassador Dr. Mendis said that in advanced economies like Korea and Malaysia, or developing economies, the connectivity or highways have played a critical, decisive and seminal role in economic advancement and augmentation of the countries.

Dr. Mendis stated that Sri Lanka, at this juncture, is very well positioned and very well poised to receive Foreign Direct Investments (FDI) and Foreign Institutional Investments (FII) since all foreign investments are protected by the Constitution of Sri Lanka.

Dr. Mendis stated that, today, Sri Lanka is where the Republic of Korea was in late 1980s, approximately 30 years ago.

“Key and determining attributes such as political stability, rule of law, conducive investment environment, human and natural resources and potentiality, to name a few, are well pronounced and are present in Sri Lanka, thus making the country a potential Mecca for FDI and FII in the region.”

Dr. Mendis also equated the current stage of the economy of the country to an equity market/stock market, which is about to rise. “Most equity markets begin to rise with skepticism, they rise with pessimism, they peak with optimism and they crash with euphoria.”

Dr. Mendis urged and entreated the potential investors to seize and capture the opportunity of the economy of Sri Lanka similar to an equity market about to rise, since the economy of Sri Lanka is at the first stage of beginning to rise.