Clothespin Management and Development (Private) Limited has announced that its flagship Cey Laya project in Colombo Port City has been revived and shifted to a new land plot after negotiations with China Harbour Engineering Company (CHEC), but the renewed investment has also reignited scrutiny over the legal troubles facing the company’s Chief Executive Officer, Dr. Priyath Bandu Wickrama.
The company dismissed reports suggesting that the project had lapsed after the original agreement was not executed within the required six-month period ending in January 2026. Instead, Wickrama said the development had been “strategically repositioned” to a different land block within Colombo Port City following discussions with CHEC Port City.
According to Wickrama, the revised location offers greater flexibility under Development Control Regulations while improving revenue generation and long-term profitability without altering the project’s original vision.
He attributed delays in finalising the previous land allocation to Sri Lanka’s economic crisis and investor uncertainty, saying international financing had slowed during that period but conditions had since improved significantly.
Clothespin said the revised Cey Laya development remains a major foreign investor-backed project valued at approximately US$595.69 million, an increase from the company’s earlier commitment of US$540 million, which included US$75 million for the land lease and US$465 million for construction.
The revised project will continue to feature luxury hotels, premium residences, office space, retail and lifestyle facilities, cultural attractions, AI data centre facilities, a public viewing deck and two rooftop helipads. Earlier plans also envisioned a twin-tower complex with a clock tower larger than London’s Big Ben and what was promoted as the world’s largest art gallery.
The company further disclosed that project sponsors have structured a EUR 300 million secured debt investment through a Credit Linked Note arrangement to support financing.
Last year, the Colombo Port City Economic Commission granted the project a 25-year tax holiday, underscoring its status as a strategic investment expected to attract significant foreign capital.
However, the project’s revival has drawn attention to the ongoing corruption case involving Wickrama, who previously served as Chairman of the Sri Lanka Ports Authority (SLPA).
The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has filed indictments alleging that Wickrama caused a loss of more than Rs.65 million to the State by unlawfully deploying 319 SLPA employees to carry out political propaganda and election campaign activities during the 2015 presidential election period instead of performing official duties.
According to the indictments, the Ports Authority continued paying salaries and overtime allowances to the employees while they were engaged in campaign work, resulting in a calculated financial loss of Rs.65,008,103.59.
The charges, filed under Section 70 of the Bribery Act, also name former SLPA Managing Director Nihal Keppetipola and former Operating Equipment Operator R.B. Sanjaya as co-accused. The case has proceeded through the Colombo Magistrate’s Court and Colombo High Court amid multiple hearings, revised indictments and legal proceedings.
While Clothespin insists the Cey Laya project is moving forward with renewed investor confidence, the high-profile corruption case against its CEO is likely to remain under close public and legal scrutiny as one of Sri Lanka’s largest proposed Port City investments advances.