Clothespin’s US$540 mn Colombo Port City project expires unsigned

Wednesday July 8, 2026 6:30 pm Wednesday July 8, 2026 6:30 pm ECONOMYNEXT – Sri Lanka’s proposed US$540 million deal with Clothespin Management and Development to build a hotel within the Colombo Port City, has expired unsigned in January 2026, the Director General of the Colomb…

Wednesday July 8, 2026 6:30 pm

ECONOMYNEXT – Sri Lanka’s proposed US$540 million deal with Clothespin Management and Development to build a hotel within the Colombo Port City, has expired unsigned in January 2026, the Director General of the Colombo Port City Economic Commission (CPCEC) told EconomyNext. The CPCEC in a Gazette in July last year gave a 25-year tax holiday to Clothespin Management and Development (Private) Limited, which plans to build a ‘twin tower marvel’ that will have a clock tower bigger than the 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 government said in a gazette notice last year. “The investor advised us he’s not going ahead with that development,” Revan Wickramasuriya, Director General, CPCEC told EconomyNext. “But he’s discussing new developments,” he said referring to Clothespin Management and Development’s latest talks with the CPCEC. The developer was unable to finalize the contract due to outstanding bond issues and internal board complications, a Clothespin Management and Development source privy to the project said. New discussions have been ongoing with the Colombo Port City Economic Commission (CPCEC) and China Harbour Engineering Company (CHEC) on a new lease, the source said. Should a new lease agreement be finalised and signed, it will not be the same plot that will be assigned for the project, both the CPCEC Director General and the source said. The source also said the clock tower was removed from the original plan because it was not lucrative. As per the Gazette for the project published in July 14, 2025, the project needed to be signed within a six month period. However, it was not signed as agreed before January 14, 2026. The company previously pledged 540 million dollars, of which 75 million dollars was allocated for the land lease, and 465 million for construction. (Colombo/July08/2026)

Wednesday July 8, 2026 5:38 pm

ECONOMYNEXT – Sri Lanka’s Treasury bill yields were broadly steady at Wednesday’s auction, with the short-term dipping slightly, data from the Public Debt Management Office showed. All offered 100 billion rupees of bills sold. The 3-month bill was down 2 basis points at 10.21, with 50 billion rupees offered and 58.47 billion sold. The 6-month bill was unchanged at 10.30 percent, with all 35 billion rupees offered sold. The 12-month bill was unchanged at 10.20 percent, with 15 billion rupees offered and 6.53 billion sold. All 3 bills are available on tap. (Colombo/Jul8/2026)

Wednesday July 8, 2026 5:31 pm

ECONOMYNEXT – Sri Lanka’s rupee closed at 336.00/30 to the US dollar in the spot market on Wednesday, weaker from 334.75/85 the previous day, while bond yields closed up, dealers said. The telegraphic transfer rate for Sri Lanka’s rupee against the US dollar was 330.50 buying, 339.50 selling; the euro was 374.4884 selling, 388.4054 buying; and the pound was 440.2500 buying, 454.2956 selling. A bond maturing on 15.09.2027 closed flat at 10.30/45 percent. A bond maturing on 15.02.2028 closed at 10.45/55 percent, up from 10.45/50 percent. A bond maturing on 15.12.2029 closed at 11.00/10 percent, up from 10.95/11.05 percent. A bond maturing on 01.08.2030 closed at 11.30/35 percent, up from 11.25/30 percent. A bond maturing on 15.10.2030 closed at 11.36/40 percent, up from 11.28/30 percent. A bond maturing on 15.12.2032 closed at 11.60/70 percent, up from 11.57/65 percent. A bond maturing on 01.11.2033 closed at 11.70/80 percent, up from 11.60/70 percent. A bond maturing on 15.06.2035 closed at 11.75/85 percent. (Colombo/Jul8/2026)

Wednesday July 8, 2026 5:23 pm

ECONOMYNEXT – Sri Lanka hopes to complete several water infrastructure development projects by 2026/2027, at a cost of 17 billion rupees, which will provide safe drinking water to around 300,000 families, Minister Susil Ranasinghe has said. Part of this is the Thambuththegama Water Project, in the president’s hometown, which was completed at a cost of 32 billion rupees. President Anura Kumara Dissanayake and the Chinese Ambassador are scheduled to officially hand over the project to the public on July 10. The project is funded through a loan from the China Development Bank (CDB), with construction and implementation carried out by Chinese state‑owned companies. The facility is designed to provide safe drinking water to 25,000 families across 42 Grama Niladhari divisions, including Thambuththegama, Thalawa, and Galnewa. The government will also lay the foundation stone for the Kebithigollewa-Horowpothana Water Project which is supported by the Japan International Cooperation Agency (JICA) with an estimated cost of 52 million rupees, this project aims to serve 50,000 families.

A primary goal of this expansion is to combat Chronic Kidney Disease (CKDu) by providing safe surface water to regions where groundwater quality is linked to the illness. Additional infrastructure goals for 2026 include the opening of the Laggala project and the completion of the Polgahawela project within two months. The Nuwara Patha Sunwara project, which will serve 73,000 families, is expected to be finished by year-end. (Colombo/July08/2026)

Wednesday July 8, 2026 5:07 pm

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Wednesday trading, CSE data showed, with the benchmark All Share Price Index moving down 0.61 percent. The ASPI was down 133.80 points at 21,828.50, while the more liquid S&P SL20 was down 0.59 percent, or 35.98 points, at 6,099.52. Positive contributors to the ASPI were Richard Pieris and Company (up 4.38 percent at 31.00 rupees), Industrial Asphalts (Ceylon) (up 60.00 percent at 0.80 rupees), and Hatton National Bank (up 0.19 percent at 396.00 rupees). Sampath Bank (down 0.88 percent at 140.25 rupees), Hayleys (down 1.37 percent at 234.00 rupees), Dialog Axiata (down 1.35 percent at 44.00 rupees), and LOLC Holdings (down 1.77 percent at 500.25 rupees) were top negative contributors. Market turnover was 2.26 billion rupees. Capital goods led turnover with 727.1 million rupees. Industrial Asphalts (Ceylon) announced its Executive Director entered into a binding agreement to sell a 48.03 percent controlling interest (1.8 billion shares) to Arcasia Investment & Trading and ATX Partners, subject to regulatory approvals. Shares closed up 60 percent at Rs.0.80. Meanwhile, Hela Apparel Holdings disclosed that its fully-owned subsidiary, Hela Clothing Egypt, has signed a management services agreement with Emerald Investments to manage its factory operations until December 31, 2026, amid working capital challenges, with an option for Emerald to acquire the Egyptian entity. (Colombo/July08/2026)

Wednesday July 8, 2026 2:15 pm

ECONOMYNEXT – Sri Lanka lender Commercial Bank’s proposed debenture issue of 20 billion rupees has been assigned a final National Long-Term Rating of A(lka) by Fitch Ratings. This is two notches below the bank’s National Long-Term Rating anchor. “This reflects Fitch’s baseline notching for loss severity for this type of debt and our expectations of poor recoveries. There is no additional notching for non-performance risks, as the proposed notes do not incorporate going-concern loss-absorption features.” The full statement is reproduced below: Fitch Assigns Commercial Bank of Ceylon’s Basel III Subordinated Debt Final ‘A(lka)’ Rating Fitch Ratings has assigned Commercial Bank of Ceylon PLC’s (COMB, AA-(lka)/Stable) proposed Sri Lankan rupee-denominated Basel III-compliant subordinated debentures of up to LKR20 billion a final National Long-Term Rating of ‘A(lka)’. The proposed debentures, which will have maturities of five, seven and 10 years, will be listed on the Colombo Stock Exchange. The bank plans to use the proceeds to further strengthen its Tier 2 capital base, reduce maturity mismatches of the balance sheet and support loan growth. The bank expects the proposed debentures to qualify as Basel III-compliant regulatory Tier 2 capital. The debentures include a non-viability clause whereby they will convert to ordinary voting shares subject to the occurrence of a trigger event, as determined by the Governing Board of the Central Bank of Sri Lanka. The final rating is the same as the expected rating assigned on 16 April 2026 and follows the receipt of documents conforming to information already received. Key Rating Drivers Fitch rates the proposed Basel III Tier 2 debentures two notches below the bank’s National Long-Term Rating anchor. This reflects Fitch’s baseline notching for loss severity for this type of debt and our expectations of poor recoveries. There is no additional notching for non-performance risks, as the proposed notes do not incorporate going-concern loss-absorption features. COMB’s National Long-Term Rating is used as the anchor rating for this instrument because the rating reflects the bank’s standalone financial strength and best indicates the risk of the bank becoming non-viable. Fitch reviewed COMB’s ratings with no rating action on 8 September 2025. See our latest rating action commentary, Fitch Upgrades 10 Sri Lankan Banks’ National Ratings and Affirms Five after Scale Recalibration, published on 21 January 2025, for the key rating drivers and sensitivities Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A downgrade of the bank’s National Long-Term Rating would lead to a downgrade of the subordinated debt rating. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade of the bank’s National Long-Term Rating would lead to an upgrade of the subordinated debt rating. (Colombo/Jul8/2026)

Wednesday July 8, 2026 1:48 pm

ECONOMYNEXT – Access Motors Private Limited, the authorized agent for Jaguar Land Rover in Sri Lanka, has been awarded the Most Professional Workshop in the After Sales Service sub-industry category at the Automobile Industry Awards 2026. “This recognition is a reflection of something we have always believed that the ownership experience does not end at handover. It continues every time a client brings their vehicle to us,” Shiran Weerasinghe, General Manager After-Sales, Access Motors Private Limited said. The award recognized the high standard of service, mechanical expertise, and vehicle repair delivered to Jaguar Land Rover clients across the island, the company said, with a team of qualified JLR-certified technicians, trained and assessed to the same exacting standards as the global Jaguar Land Rover service network, handling each vehicle. Access Motors operates the only Jaguar Land Rover certified Body Shop in Sri Lanka, a state-of-the-art, multi-brand repair facility equipped with the latest diagnostic technology and aluminium repair capabilities, for routine maintenance to complex structural repairs. The company’s 3S workshop at 117 Dehiwela Road, Boralesgamuwa, is home to 30 workshop bays, 20 two-post vehicle lifts, and a technical team operating at 95% utilization and 90% efficiency – metrics that place it firmly among the most productive after-sales facilities in the region, the company said. The Automobile Industry Awards recognize excellence and innovation across Sri Lanka’s automotive sector. (Colombo/Jul8/2026)