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New investment project: UDA launches Logistics Park aimed at forex generation

19 Feb 2022

  • Expected to generate over 1,000 jobs
  • To be built on 36-acre UDA land
  • UDA inks Rs. 2.2 b contract with Access Lanka Park
By Uwin Lugoda The Government has commenced work on a new Rs. 2.2 billion Logistics Park in Ja-Ela which the Urban Development Authority (UDA) claims has the potential to bring in up to $ 50 million in foreign exchange earnings to the country within the first 10 years of operation.  The park is also expected to also create 1,000+ jobs opportunities, The Sunday Morning learns.  According to the Ministry of Urban Development and Housing, the UDA launched the new investment project, named Logistics Park, in Ekala, Ja-Ela on 14 February. It stated that this new park was being built on a 36-acre undeveloped land belonging to UDA.  Ministry Media Spokesperson Prasad Manju stated that the project was initiated under the instructions of Prime Minister Mahinda Rajapaksa in his capacity as Urban Development and Housing Minister.  He explained that the construction of such a logistics park was a first for the Ja-Ela area and would provide a major investment to the country due to it being centred between the Colombo Port and the Katunayake Bandaranaike International Airport.  According to the Ministry, this project could generate up to $ 50 million in foreign exchange from storage facilities alone, from the inception of the project to the 10-year mark.  He went on to state that the project also had the potential to create job opportunities during this time; with an estimated 800 direct labour jobs, 500 jobs in the transport sector, and about 300 opportunities for supply chain management.  “The main objective of this project is to promote Sri Lanka as a supply integration centre. Under this project, Sri Lanka will be developed as a regional distribution and integration hub for large multinational customers and it will enhance the multinational manufacturing process in the country, while also accelerating the growth of those businesses globally.” Manju stated that this project was the first of its kind to establish a distribution centre in Sri Lanka as a large-scale global competitor. He explained that measures would be taken to provide international supply and management expertise and training to the local staff operating for this purpose. This Logistics Park will be developed as a Public-Private Partnership with an investor who has been selected through a competitive bidding process. "The Government uses land owned by the UDA, such as this, for investment projects through the Government procurement process on a competitive basis, with the aim of encouraging local investors and providing opportunities to foreign investors. This land has been given to a local investor on a policy basis to allow them to initiate investment opportunities in a transparent manner through the Government procurement process,"said Manju.  As such, an agreement was signed earlier between the UDA and Access Lanka Park (Ekala) (Pvt.) Ltd., a subsidiary of Access Engineering (Pvt.) Ltd., which invested Rs. 2.2 billion for the project. The agreement was signed between UDA Chairman Major General (Rtd.) Udaya Nanayakkara and Access Engineering Managing Director Rohana Fernando.  Manju stated that according to the financial proposal, the lease period for the project was 50 years, with the entire lease amount being paid at once to the UDA. At the end of the lease of the project, the UDA will have a Logistics Park with more than 700,000 sq ft of storage space and an office space with all amenities, drainage, backup utility, and landscaping. In addition, the space will also house 2,000 sq ft of ‍A grade office space  and a variety of entertainment venues, restaurants, and lodging facilities that can accommodate more than 300 staff members.  During the launch, General Nanayakkara stated that this development project would further accelerate development activities in the Ja-Ela area.  “Such a project is imperative for the development of this area and with it we will see a large number of direct and indirect jobs being created and infrastructure being improved,” said Nanayakkara.  


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