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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.

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."

— Priyath Bandu Wickrama, CEO of Clothespin Management and Development (Private) Limited

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."

Revised 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.

Funding Via Bonds

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)