The Investor Sentiment - Equity and investments forum for Sri Lankans

Display results as :

Rechercher Advanced Search

Latest topics
» Theory of Everything
Today at 10:30 am by කිත්සිරි ද සිල්වා

» In the Meantime, Within Our Shores !
Today at 9:14 am by කිත්සිරි ද සිල්වා

» Dividend Announcement
Yesterday at 6:41 pm by Rana

Yesterday at 3:43 am by Jana1

Wed May 23, 2018 7:34 pm by sashimaal

» ඊ.ටි.අයි ෆිනෑන්ස් විකිණිමට මහ බැංකුවේ අවසරය
Tue May 22, 2018 9:43 pm by Ethical Trader

» Elsewhere vs SL : Honesty, Social responsibility , Word twisting and Decency
Tue May 22, 2018 8:53 pm by Yin-Yang

» Whats ailing Sri Lanka ? Why we are what we are!
Tue May 22, 2018 6:02 pm by Yin-Yang

» Karl Marx and the Social Sciences
Sun May 20, 2018 11:25 pm by Backstage

» Your Face Is Now in a Database
Sun May 20, 2018 10:47 am by කිත්සිරි ද සිල්වා

» ජපානය: තත්පර විසිපහකට පෙර දුම්රිය පිටත් වූවාට 'සමාවෙන්න'
Fri May 18, 2018 10:10 pm by Ethical Trader

» Sri Lanka still good for global equity investors
Tue May 15, 2018 6:42 pm by Ethical Trader

» Thilak Karunaratne No More at SEC – Mangala Confirms
Tue May 15, 2018 12:48 pm by Ethical Trader

» Cartoon of the day...
Tue May 15, 2018 12:38 pm by Ethical Trader

» How to Mismanage a World
Tue May 15, 2018 12:31 pm by කිත්සිරි ද සිල්වා

» How the British Learnt to Speak Sinhala
Tue May 15, 2018 1:10 am by slstock

» රත්‍රං ආනයන සීඝ්‍රයෙන් ඉහළට – වෙළෙඳ හිඟය තවදුරටත් පුළුල් වෙයි
Mon May 14, 2018 5:53 pm by Ethical Trader

» ඇඟලුම් අපනයන ආදායම – ඇමරිකාවෙන් පහළට යුරෝපයෙන් ඉහළට
Mon May 14, 2018 5:52 pm by Ethical Trader

» බැඳුම්කර විදෙස් ආයෝජන ඉවතට – පෙබරවාරියේ දී ඩොලර් මිලියන 55 ක ශුද්ධ ගෙවීමක්
Mon May 14, 2018 5:51 pm by Ethical Trader

» Flying is the Safest mode of Transport
Mon May 14, 2018 5:49 pm by Ethical Trader

» Student presents thesis in underwear !
Mon May 14, 2018 5:38 pm by Ethical Trader

» රුපියල බේරගන්න ඩොලර් මිලියන 100 කින් මහ බැංකුව මැදිහත් වෙයි
Mon May 14, 2018 1:00 pm by slstock

» Hello and CSE ?
Mon May 14, 2018 12:17 pm by slstock

» LIOC.N0000 (Lanka IOC PLC)
Mon May 14, 2018 11:51 am by CK

» රටේ දේශපාලන ස්ථාවරත්වය ගැන මහ බැංකු අධිපතිගේ මතය මෙන්න
Sat May 12, 2018 12:18 pm by nihal123

» Sri Lanka rupee close flat after US$136mn interventions,stocks steady
Fri May 11, 2018 7:21 pm by The Invisible

» Sri Lanka's rupee showings signs of stabilizing: Central Bank
Fri May 11, 2018 7:17 pm by The Invisible

» Sri Lanka's central bank caught between peg and a hard place
Fri May 11, 2018 7:15 pm by The Invisible

» Sri Lanka to re-price fuel every two months on formula
Fri May 11, 2018 7:11 pm by The Invisible

» ඩොලර් රුපියල් සටන
Fri May 11, 2018 5:39 pm by Ethical Trader

» Age is just a number
Fri May 11, 2018 2:38 pm by කිත්සිරි ද සිල්වා

» Citizen Police Action
Fri May 11, 2018 8:33 am by කිත්සිරි ද සිල්වා

» In every five minutes
Wed May 09, 2018 8:00 pm by spw19721

Wed May 09, 2018 8:06 am by yellow knife

» Sri Lanka's Sampath Bank March 2018 quarter net profit up 41.4-pct
Fri May 04, 2018 8:15 pm by The Invisible

» Sri Lanka rupee gains from intervention, stocks down 0.26-pct
Fri May 04, 2018 8:11 pm by The Invisible

» Help CSE to catch manipulators!
Fri May 04, 2018 5:21 pm by Ethical Trader

» Yahapalanaya in action.
Fri May 04, 2018 4:54 pm by Ethical Trader

Fri May 04, 2018 11:47 am by The Invisible

» ජනාධිපති කාර්ය මණ්ඩල ප්‍රධානියා අල්ලස් දැලේ
Fri May 04, 2018 6:02 am by Ethical Trader

» Sri Lanka rupee gains after intervention, stocks marginally up
Thu May 03, 2018 10:12 pm by The Invisible

» Sri Lanka's glyphosate ban cost Rs35bn in crop losses: farm managers
Thu May 03, 2018 10:10 pm by The Invisible

» මූල්‍ය නොවන රාජ්‍ය ආයතනවල නොපියවූ ණය රු. බිලියන 844 ඉක්මවයි
Thu May 03, 2018 2:52 pm by Rana

» අර්ථසාධකේ ආයෝජන ආදායම 15% කින් වැඩිවෙද්දී ලාභාංශ ආදායම 30% කින් අඩුවෙලා
Thu May 03, 2018 2:48 pm by slstock

» Sri Lanka political uncertainty seen undermining investor confidence: Fitch
Thu May 03, 2018 12:33 pm by Ethical Trader

» ලෝක ශ්‍රේණිගත කිරීම්වල ශ‍්‍රී ලංකා පිල ඇෆ්ගනිස්තානයටත් වඩා පහලට ඇද වැටේ..!
Thu May 03, 2018 9:22 am by කිත්සිරි ද සිල්වා

» Food and Beverages
Thu May 03, 2018 8:14 am by yellow knife

» Obituary Notice.
Tue May 01, 2018 9:47 am by Backstage

» EPF follows streamlined methodology in investing in CSE and Unit Trusts
Tue May 01, 2018 9:28 am by Backstage

» Sri Lanka's central bank kills Rs19bn in printed money, supporting rupee
Sat Apr 28, 2018 9:54 pm by nihal123

May 2018

Calendar Calendar


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

One Colombo Project receives 8 acres at Slave Island, special concessions

Go down

One Colombo Project receives 8 acres at Slave Island, special concessions

Post by sashimaal on Sat Jan 28, 2017 2:01 pm

The government has given an eight-acre land in Slave Island to a private company which would invest US D 429.5 million(Rs 64,425 million) to construct a multi-storeyed building complex as a re-development and mixed development project.

The government has granted an income tax holiday for 10 years and a tax exemption for six years to the investing company named One Colombo Project (Private) Ltd, according to a gazette tabled in parliament yesterday.

Chief Government Whip and Parliamentary Affairs and Mass Media Minister Gayantha Karunathilake presented the gazette on behalf of Minister of Development Strategies and International Trade Malik Samarawickrama.

According to the gazette, the One Colombo Project (OCP) shall implement and commence commercial operations in the said area within eight (08) years from the date of the project agreement signed between the Board of Investment of Sri Lanka and the OCP.

The provisions of the Inland Revenue Act No 10 of 2006 relating to the imposition of income tax (under Corporate Income Tax) shall not apply for a period of ten years to the profit of the project other than the sale of apartments and only a tax exemption of period of six years for the income generated through the sale of apartments.

"Dividends distributed to the shareholders out of the exempted profit shall be exempted from the income tax during the said tax exemption period of ten years or six years as the case may be and one year after," the gazette says.

It says: "The company shall be exempted from the payment of Withholding Tax on the following: (a) on the interest on foreign loans taken for capital expenditure and technical fees paid to consultants ; (b) on management fees and royalty payments provided however the total of such charges does not exceed three per cent of the gross operating revenue; (c) on marketing fees provided however the total of such fees does not exceed 1.5 percent of the gross operating revenue; and (d) on incentive management fees provided however the total of such fees does not exceed 10 percent of the gross operating profit.

"The expatriate staff of the project company shall be exempted from the payment of Pay As You Earn tax subject to the restriction that this concession shall apply subject to the maximum number of 15 employees at any given time.

"All imports of project related goods and local purchases of project related goods or services required for the implementation of the projects as approved by the BOI, shall be exempted from the payment of VAT for eight years.

"The project company shall be exempted from the payment and charge of Ports and Airports Development Levy (PAL) for eight years.

The Project company shall be exempted from Construction Industry Guarantee Fund Levy.

The company has also been given an exemption of paying Customs duty on importation of project related items for eight years.

UPFA MP Bandula Gunawardena called on the Chair and asked the Speaker to give a debate on the matter.

Top contributor
Top contributor

Posts : 5599
Join date : 2014-02-28

Back to top Go down

Re: One Colombo Project receives 8 acres at Slave Island, special concessions

Post by Future123 on Sat Jan 28, 2017 8:10 pm

Any idea about the selling price of the land? Giving this much of exemptions is a crime when we, the general public, charged with all unfair taxes.

Why this tax holiday of 10 years for construction of apartments as the builders make huge profits. We can justify giving exemptions for manufacturing and export companies but for apartment construction is very fishy.

Surely, this is yet another massive fraud by Yahapalanaya politicians.

Active Member
Active Member

Posts : 1435
Join date : 2014-04-09

Back to top Go down

Re: One Colombo Project receives 8 acres at Slave Island, special concessions

Post by sashimaal on Sat Jan 28, 2017 10:30 pm

Below is for people who were born yesterday:

Tata’s unusual deal with UDA; free 8-acre land with trade-offs


By Bandula Sirimanna

Colombo township project takes off

In an unconventional deal, India’s Tata Housing, the real estate arm of the Tata Group and a wholly-owned subsidiary of Tata Sons this week launched a US$ 400 million mixed development project in Slave Island Colombo,

The project is in collaboration with the Urban Development Authority (UDA) as a major township rejuvenation initiative, at the same time resettling shanty dwellers in the area in improved housing units.

The unusual deal is made of an agreement between the UDA and Tata Housing to hand over an 8-acre block of land to the former on a 99-year lease “free of charge” bordering the former Education Department site to the North, Malay Street to the East, Justice Akbar Street to the South and the railway line to the West, officials said. Developments of this nature in the past have normally been on a lease rental basis.

Tata Housing secured the deal without any evaluation because of their high credentials although three more companies had submitted their bids, UDA chairman Nimal Perera said at the ceremonial inauguration of the project.

The Indian company will get the land with no lease payment and in exchange has agreed to bear the full cost of building a fully-fledged housing complex on a 3-acre block of land (in the same property) for displaced residents, he told the Business Times separately.

The land value in the area ranges from Rs. 7 million to Rs. 9 million per perch with the average value being around Rs. 8 million, an official of the Valuation Department who wished to remain anonymous, told the Business Times.

Accordingly the total value of 8 acres is in the region of Rs. 10.3 billion and the minimum value of the 99-year land lease would be around Rs. 5 billion, he added.
According to the agreement, the housing complex will house 582 families and 100 shop owners who were displaced by the project. This first stage of the innovative project is to be completed within two years.

The total cost for providing alternate housing/commercial units including rental payments for temporary accommodation of the families is estimated to be about Rs. 5,874 million, a senior official said, adding that the cost of building the housing complex for residents has not been estimated as yet.

The total cost of building the housing complex and for providing the house rental of displaced residents for 30 months in other locations till the completion of the housing complex will be borne by the Indian company, Mr. Perera disclosed.
However both Mr. Perera and TATA Housing chief Brotin Banerjee declined to divulge the total cost as the project is still at the initial stage.
All residents who had lost land and houses will get equal or bigger housing in the new housing complex, Mr. Perera said.


Tata company undertakes mixed development project in Colombo 2
Generous tax concessions granted; FDI of US$ 130 m. of total cost of US$ 430m.


India’s Tata Housing Development Company has become the latest international firm to be given generous tax concessions for a mixed development project it is building at Slave Island, Colombo 2. This includes a ten-year corporate income tax waiver on the profits of the project, other than from the sale of apartments. The exemption for income generated through the sale of apartments is six years. A second gazette in this regard was issued on November 3, following the granting of Cabinet approval for the concessions. It was signed by Investment Promotion Minister Lakshman Yapa Abeywardena. The first gazette was issued in July, under the provisions of the Strategic Development Projects Act.

TATA has incorporated a local company in Sri Lanka named M/s. One-Colombo Project (Private) Limited. It will redevelop an eight acre plot of land in Slave Island. It will build apartments for low-income families on part of the property.

The project, which is an initiative of the Urban Development Authority (UDA), will cost US$429.5 million. US$130 million of this is foreign direct investment. In addition to the corporate income tax concession, dividends distributed to shareholders out of the exempted profit will be exempted from income tax for ten or six years, as the case may be, and one year thereafter.

Waivers of Withholding tax are also afforded in specified cases. The expatriate staff of the project company will be exempt from the pay as you earn (PAYE) tax, subject to restrictions. Several other concessions have been offered, in keeping with the Act.

The Slave Island project was floated by the UDA, partly as a means of resettling thousands of low income families who had been evicted from the area to free up prime property in Colombo. They have been promised better housing. The project will also include residential and commercial buildings, including luxury apartments.

Last month, the UDA issued a statement saying that construction has started on 15,000 housing units for low-income families in different parts of Colombo. The block in Slave Island has been identified as a “priority project” requiring private sector investment, it said.

The gazette that was issued in July said the redevelopment of the said area “will bring significant change in the landscape of Colombo city through higher standard of living associated with better quality of life to the habitants”. It also said the establishment of the mixed development project will contribute to the economic development of the country.


Flashback: Tata officials explain the One Colombo project to the then Defence and Urban Development Secretary Gotabaya Rajapaksa at the ground breaking ceremony held in May last year(2014).

Top contributor
Top contributor

Posts : 5599
Join date : 2014-02-28

Back to top Go down

Re: One Colombo Project receives 8 acres at Slave Island, special concessions

Post by කිත්සිරි ද සිල්වා on Sun Jan 29, 2017 8:14 am

Many now have selective amnesia ! Shocked
කිත්සිරි ද සිල්වා
Top contributor
Top contributor

Posts : 7228
Join date : 2014-02-23
Age : 60
Location : රජ්ගම

Back to top Go down

Back to top

Permissions in this forum:
You cannot reply to topics in this forum