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SCMP Reporter

MULTI-STOREY buildings of the likes of Hong Kong's monoliths are a long way from becoming commonplace in Sri Lanka - even in the country's commercial capital, Colombo.

   But then this is why a 39-storey twin-tower office complex to be developed in this booming city by a Singaporean investment group is generating considerable interest locally and abroad.

  Called Echelon Square, the 155.9-metre-tall complex, will be the tallest in Sri Lanka. It is scheduled for completion by mid-1995.

   The development is surrounded by well-equipped modern office complexes such as the Bank of Ceylon head office building, the stunning Hilton and the Marriot.

  It is being built on prime real estate in Colombo's Bank of Ceylon Mawatha (or main street).

    Echelon Square will comprise two office towers, a commercial low block and a four-storey atrium with parking facilities for 550 cars.

  Property analysts here view the development as another potent sign of the rapidly changing economic climate of Sri Lanka. Economists and fund managers say Sri Lanka's economy is the most dynamic in South Asia with a Gross Domestic Product (GDP) growth rate of about 5 per cent last year.

   The country discarded discredited socialist dogma more than 15 years ago and opened up for foreign investment.

  Despite a protracted minority separatist conflict that has drained government finances, investors view Sri Lanka as a safe destination compared with Southeast Asian nations like the Philippines, where armed crime is common and some foreign investors fromJapan and Taiwan fall prey to gangs.

  Political stability and a liberalised economy have attracted more foreign investors to Colombo from Hong Kong, Australia and South Korea. And government agencies, such as the Board of Investment, are luring potential foreign investors with tempting incentives.

  The Echelon Square project developer is one among many who have identified Colombo's economic potential.

    ''The package of incentives offered to investors includes 100 per cent tax holidays for up to 15 years, duty-free imports and exports, and other important concessions,'' said Shing Pee Tao, chairman of Overseas Realty (Ceylon) Ltd.

     Mr Shing is also chairman of Land Property Development of Singapore, a firm with extensive experience in real estate projects in China and Indonesia.

  Eighty-five per cent of the Echelon Square project is owned by the Shing Kwan group of companies, run by Mr Shing's family. The remainder is owned by local investors.

  ''The Shing Kwan group of companies represents my personal and family interest and we believe in the future of Sri Lanka,'' said Mr Shing.

  ''With our considerable experience in quality property developments, we will apply our creative energies to make Overseas Realty (Ceylon) Ltd the premier property company in Sri Lanka.

  ''With the assistance and co-operation of the authorities, Echelon Square will demonstrate to the investment communities both in Sri Lanka and abroad that the government is sincere in opening its doors to investors.''       Echelon Square will have office space and areas for exclusive shops, fast-food outlets, restaurants, destination shops, travel agencies and Colombo branches of international firms.

  So far, more than 40 million rupees (about HK$7.6 million) has been pumped into the project and, by completion, an estimated Rs 110 million will have been spent on it.

  According to Hussein Cassim, a director of Overseas Realty (Ceylon), the project was undertaken to stimulate Sri Lanka's industrial and technological progress, ''perhaps a shade quicker than Sri Lanka is doing at the moment''.

  ''We need more projects such as this to be implemented to boost the economy of Sri Lanka.''   Later, the developer hopes to make a public share offering.

  ''We at Overseas Realty (Ceylon) can proudly say that from the inception of the project we have the full backing of the government, and if all goes well it should be completed by the first half of 1995,'' said Mr Cassim.

  Turner and Steiner East Asia Limited are the general contractors for the project, while Tao and Ihinoshita, based in Hong Kong, act as consultants.



Colombo tower seen as signal for investors