FINANCIAL CHRONICLE – The proposed agreement worth $540 million between Sri Lanka and Clothespin Management and Development for the construction of a hotel in Colombo Port City has lapsed without being signed, as stated by the Director General of the Colombo Port City Economic Commission (CPCEC) .
In a Gazette published last July, the CPCEC granted a 25-year tax exemption to Clothespin Management and Development (Private) Limited, which intended to create a remarkable twin tower structure featuring a clock tower larger than Big Ben.
The project was designed to include the world’s largest art gallery on a plot designated as “Hotel Use Land Plot 2-01-11,” encompassing 24,324 square meters within Colombo Port City, according to a government Gazette announcement from the previous year.
Revan Wickramasuriya, the Director General of CPCEC, informed FINANCIAL CHRONICLE that “the investor has indicated that they will not proceed with that development.” He added, however, that Clothespin Management and Development is currently exploring new opportunities with the CPCEC.
A source familiar with the project indicated that the developer faced challenges in finalizing the contract due to unresolved bond issues and internal board matters.
Ongoing discussions are taking place between Clothespin Management and Development, the CPCEC, and the China Harbour Engineering Company (CHEC) regarding a new lease agreement, the source revealed.
If a new lease is finalized, it is expected that the project will not utilize the same plot originally intended, according to both the CPCEC Director General and the source. Additionally, the clock tower concept has been excluded from the revised plans due to financial considerations.
According to the Gazette issued on July 14, 2025, the agreement needed to be executed within six months, but it failed to be signed before the deadline of January 14, 2026.
The development company had previously committed to an investment of $540 million, which included $75 million for the land lease and $465 million allocated for construction costs. (Colombo/July08/2026)
