Clothespin says its Sri Lanka Port City project repositioned with revised US$596mn investment

Thursday July 9, 2026 4:38 pm

ECONOMYNEXT – Clothespin Management and Development's Cey Laya project within Colombo Port City has been repositioned in a new plot of land following discussions with China Harbour Engineering Company (CHEC), the firm said.

1 million rupees. "November elections in the US are what people are looking for plus our budget," Wickremeratne added.

Priyath Bandu Wickrama, Chief Executive Officer of Clothespin Management and Development (Private) Limited said the project remains active and has been strategically repositioned to a new land block within Colombo Port City, following discussions with CHEC Port City.

"The revised location offers improved Development Control Regulation flexibility, better revenue potential and improved profitability, while retaining the core vision of the original development," Wickrama told EconomyNext in a statement.

The statement comes after EconomyNext reported the expiry of the original project because it was not signed within the stipulated six-month period through January 2026.

"The delay in concluding the earlier land arrangement was mainly due to the wider country situation and international investor concerns connected to Sri Lanka's economic environment at the relevant time," Wickrama further said.

"These matters affected the international financing process. However, those concerns have now significantly improved, and the project sponsors continue to progress discussions with the relevant stakeholders."

Clothespin said in a separate statement that "the Cey Laya development has not been stopped and the project remains active".

Revised Up Investment

"The revised Cey Laya development represents a major foreign investor-backed project with an estimated total project cost of approximately US$595.69 million," Clothespin said in a statement sent to EconomyNext.

The company previously pledged US$540 million, allocating 75 million for the land lease and 465 million for construction.

"Following the strategic relocation to a new land block and the refinement of the project scope, the revised model is expected to deliver much better revenue potential, stronger commercial efficiency and improved long-term profitability."

Colombo Port City Economic Commission (CPCEC) granted Clothespin a 25-year tax holiday in a Gazette in July last year. Clothespin was originally planning to build a 'twin tower marvel' featuring a clock tower larger than Big Ben.

The plan was to build a property that will house the "world's largest art gallery in the "Hotel Use Land Plot 2-01-11 spanning over an area of 24,324 square metres in Colombo Port City", the CPCEC said in a gazette notice last year.

"The new land block offers greater flexibility in planning, design, land-use allocation and revenue-generating components," Clothespin said in its statement.

"This is expected to improve the overall commercial strength of the project, create much better revenue opportunities and deliver improved long-term profitability."

"The relocation should therefore be seen as a positive strategic enhancement of the project, not as a cancellation or withdrawal."

It said the overall design concept and vision of Cey Laya have not materially changed.

"It remains the same landmark mixed-use development, with only a slightly refined scope to improve commercial viability, investor alignment and long-term operating value."

The revised development will continue to include luxury hospitality, premium residences, premium offices, retail and lifestyle facilities, cultural spaces, AI data centre facilities, a viewing deck and two rooftop helipads, Clothespin said.

It also said the sponsors of the project have structured a EUR 300 million secured debt investment through a Credit Linked Note structure connected to the Cey Laya development.

"The investment has a 10-year tenor, with investor repayment intended at maturity." Clothespin said.

Following the relocation, the annual investor coupon has been revised upward from 9.8% to 10.4% per annum.

"This enhanced coupon reflects the strengthened commercial profile of the project and is intended to provide a more attractive return proposition to institutional and qualified investors," the Company said.

"Bond investors are expected to receive the 10.4% annual coupon through semi-annual interest payments, providing investors with a regular income stream during the investment period, subject to the terms of the final investment documentation."

The investment structure also includes 120% minimum collateralisation, with a minimum subscription amount of EUR 100,000.

The company is in a global marketing and placement exercise to introduce the bond to institutional and qualified investors internationally.

"In addition to the bond financing, the revised business model anticipates further funding through advance booking fees and pre-sales connected to the project's luxury residential and hospitality components," the company said.

"Together, the EUR 300 million bond programme and anticipated advance sales form the core funding strategy for the revised Cey Laya development."

"Sri Lanka's strategic location between Dubai and Singapore, its proximity to major global shipping routes, and the investor-friendly framework of the Colombo Port City Special Economic Zone create a strong foundation for developments of this nature." (Colombo/July 09/2026)

Thursday July 9, 2026 4:15 pm

ECONOMYNEXT – The Ceylon Chamber of Commerce is offering a Free Sale Letter for Pharmaceuticals for Sri Lanka pharmaceutical manufacturers and exporters to support compliance requirements in international markets.

The new service expands the chamber's Commercial Documents Registration Division (CDRD) portfolio of trade documentation solutions.

"By providing reliable documentation support and adapting its services to changing trade needs, the Division assists Sri Lankan businesses in managing export requirements and accessing international markets," the chamber said.

The CDRD also offers Certificates of Origin and the certification of key commercial documents required by overseas buyers, customs authorities, and regulatory bodies.

It provides certification and verification services to exporters, manufacturers, freight forwarders, logistics providers, and other trade stakeholders, supporting businesses in meeting documentation requirements for global markets.

It facilitates the certification of Commercial Invoices, Packing Lists, Price Lists, Health Certificates, Phytosanitary Certificates, Certificates of Analysis, Bills of Lading, Survey Reports, Beneficiary Certificates, and other export-related documents.

The division also issues Free Sale Letters and Surveyor Appointment Letters, while supporting exporters through the Ministry of Foreign Affairs' Electronic Document Attestation System (e-DAS). (Colombo/Jul9/2026)

Thursday July 9, 2026 4:04 pm

ECONOMYNEXT – Sri Lanka's Colombo Stock Exchange closed down on Thursday, CSE data showed, with the benchmark All Share Price Index moving down 0.60 percent.

"Sentiment has been really bad after the war in the Middle East started escalating dramatically," Raynal Wickremeratne, Head of Research and Strategy at NDB Securities, said.

"No major catalyst to suggest a recovery in some other form."

The ASPI was down 130.78 points at 21,697.72, while the more liquid S&P SL20 was down 0.59 percent, or 36.28 points, at 6,063.24.

"Because of global instability there's a slowdown in the markets, and investors must look for companies with very specific changes instead of an overall position," Wickremeratne said.

Positive contributors to the ASPI were Seylan Bank (up 1.50 percent at 101.50 rupees), Lanka IOC (up 0.89 percent at 141.25 rupees), and Malwatte Valley Plantations (up 4.36 percent at 57.40 rupees).

Commercial Bank of Ceylon (down 0.85 percent at 205.25 rupees), Melstacorp (down 0.93 percent at 186.00 rupees), Lion Brewery (Ceylon) (down 4.31 percent at 1,727.25 rupees), and Hayleys (down 1.07 percent at 231.50 rupees) were top negative contributors.

Market turnover was 1.44 billion rupees. Capital goods led turnover with 539.1 million rupees.

"November elections in the US are what people are looking for plus our budget," Wickremeratne added.

Vidullanka authorized a first dividend distribution of 0.20 rupees per share (gross dividend subject to withholding tax) for its shareholders.

The dividend distribution does not require shareholder approval and is scheduled to be dispatched on or before August 7, 2026. (Colombo/July09/2026)

Thursday July 9, 2026 3:11 pm

ECONOMYNEXT – Sri Lanka's Parliament has approved a resolution under the Customs Ordinance and two orders under the Sri Lanka Export Development Act, officially enacting a tariff overhaul aimed at streamlining and liberalizing its trade regime.

Lawmakers green lighted to the Resolution under the Customs Ordinance (Chapter 235) published in Extraordinary Gazette No. 2478/03. Parliament also approved two orders targeting para-tariffs published in Extraordinary Gazette Nos. 2478/04 and 2479/38 under the Sri Lanka Export Development Act.

The tariff adjustments had already delivered in terms of government revenue, Deputy Minister of Economic Development Nishantha Jayaweera told parliament, with customs import duty revenue from April 1 to May 15 rising to 39 billion rupees in 2026, from 24 billion rupees during the same period in 2025.

The revenue surge follows the implementation of a new four-tier National Tariff Policy on April 1, which replaced the previous three-tier system of 0%, 15%, and 20%.

The updated framework structures import duties into four bands of 0%, 10%, 20%, and 30%, aligned with the UN Broad Economic Categories (Revision 5).

A total of 8,225 HS Codes are subject to this overhaul.

Under the new allocations, 3,056 codes (essential goods, medicines, and machinery) drop to 0%, 406 codes (basic industrial and intermediate goods) are taxed at 10%, 2,195 codes are fixed at 20%, and 582 codes (luxury and domestically manufacturable items) face a 30% rate.

Mixed rates apply to 411 codes, while 875 codes under specific rates remain unchanged.

"Simplifying our tax policy is a primary goal. This will improve transparency and eliminate para-tariffs, which have been a major barrier when entering into international trade agreements," Jayaweera said.

Alongside the tariff adjustments, the government is phasing out the CESS duty across four stages to eliminate para-tariffs by 2029.

While 37 HS Codes face newly introduced CESS duties, 17 codes for edible oils saw their CESS removed entirely.

The phase-out will hit five categories. For 46 economic-rate HS Codes, CESS is entirely abolished in 2026. For 693 intermediate and capital goods codes, the levy drops by 50% in 2026, and 25% each in 2027 and 2028.

107 specific codes will see CESS phased out by 25% in 2027, 25% in 2028, and 50% in 2029.

Additionally, CESS on 265 textile codes is removed in 2026 alongside a new import VAT, while 1,523 consumer goods will see CESS fully eliminated by 2029.

"The removal of CESS duties on intermediate goods will directly lower raw material costs. This will open a favorable export market for our local entrepreneurs," Jayaweera said. (Colombo/July09/2026)

Thursday July 9, 2026 2:09 pm

ECONOMYNEXT – Sri Lanka's Hambantota International Port (HIP) has recorded its highest-ever monthly throughput for both roll-on/roll-off (RoRo) and container operations in June 2026, driven by regional shipping disruptions and capacity expansions.

The port handled 90,219 vehicles and 80,325 twenty-foot equivalent units (TEUs) during the month, Hambantota International Port Group said.

"June's performance demonstrates the importance of anticipating change and being ready when customers need alternatives," Wilson Qu, Chief Executive, Hambantota International Port Group (HIPG) said.

Officials attributed the volume surge to early operational planning triggered by rising security uncertainties around the Strait of Hormuz in West Asia.

Shipping lines seeking alternative networks shifted cargo to the southern Sri Lankan port, which sits 10 nautical miles off the main East-West sea lane.

The June milestone follows expansion at the facility. In 2025, HIP's total cargo throughput rose 175 percent year-on-year to 8.24 million metric tonnes.

Container volumes grew to 428,036 TEUs in 2025, up from 53,169 TEUs in 2024.

To accommodate the shifting trade flows, the port recently doubled its RoRo yard capacity and expanded its container yard space by 30 percent. HIPG has also committed 108 million USD for new container handling equipment, aiming to lift its annual container terminal capacity to 2 million TEUs.

The port's container segment has seen consecutive volume spikes this year. In April 2026, HIP recorded its highest single-vessel container throughput, handling 13,260 TEUs on the MSC Marie Leslie.

Operated as a public-private partnership, HIP manages diversified marine operations including RoRo, containers, bulk cargo, energy, and ancillary marine services. (Colombo/July09/2026)

Thursday July 9, 2026 1:30 pm

ECONOMYNEXT – Access Solar and Access Real Estate/Residencies have made javelin thrower Rumesh Tharanga their corporate brand ambassador in a sponsorship which will provide financial and logistical backing in the run-up to the 2028 Olympic Games.

The partnership will also cover financial and logistical backing for his coach, the companies said.

"This corporate alliance aims to elevate Sri Lankan sports on the global stage while underscoring the vital connection between corporate backing and athletic excellence."

Tharanga is the first Sri Lankan male javelin thrower to reach the finals of the World Athletics Championships.

"My final target is the 2028 Olympic Games. Before that, I will focus on the 2026 Commonwealth Games and the Asian Games," Tharanga said.

Property developer Access Real Estate and renewable energy firm Access Solar are subsidiaries of the Access Group of Companies.

Thursday July 9, 2026 12:45 pm

ECONOMYNEXT – Sri Lanka will begin paddy procurement for the 2026 Yala season from July 15, with the Treasury allocating 6 billion rupees and another 10 billion rupees through state banks as Odapana loans, the president's media has said.

President's Secretary Dr Nandika Kumanayake has asked officials to clear existing paddy stocks in warehouses, in coordination with Sathosa, to receive the new harvest.

The Paddy Marketing Board currently holds approximately 120,000 metric tonnes of paddy in its warehouses, according to the PMD statement.

"Of this, tenders have been called to release around 60,000 metric tonnes to the market, while steps have already been taken to supply a further 20,000 metric tonnes to Sathosa."

Around 475,000 hectares of paddy land had been cultivated during this Yala season, a meeting chaired by Kumanayake and attended by the Agriculture Ministry Secretary D P Wickramasinghe was told.

Wickramasinghe claimed that farmers are waiting for the Paddy Marketing Board to begin purchasing paddy before selling their harvest.

The meeting also discussed obtaining additional storage facilities from government institutions, including cooperative societies and the Department of Agrarian Development, as well as leasing warehouses from the private sector. (Colombo/Jul9/2026)

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