By Sugeeswara Senadhira Courtesy Ceylon Today

The Colombo Port City Commission (CPCC) bill passed with several amendments proposed by the Government and opposition MPs and in accordance with the Sri Lankan Supreme Court (SC) determinations received by the Speaker of Parliament. After placing the SC determinations before Parliament on 18 May, a two-day lively debate was held where frank opinions were expressed by the members highlighting the democratic space available in Sri Lanka under freedom of expression.

The Bill provides for the establishment of a Commission empowered to grant registrations, licenses, authorizations, and other approvals to carry on businesses and other activities in the Special Economic Zone (SEZ) to be established within the Colombo Port City. Several petitions were filed in the SC challenging the Bill on grounds that some of its clauses are inconsistent with the Constitution. Now that the bill has been passed, a high-powered five-member Commission to administer the Port City could be set up.

President Gotabaya Rajapaksa stressed the importance of the Colombo Port City for Sri Lankan economy at the 26^th International Conference on The Future of Asia” held last Thursday (20). Organised by Japanese mega Media group Nikkei, this year’s Conference was held on the appropriate theme,Shaping the Post COVID Era: Asia’s Role in the Global Recovery”. Delivering the Key Note Address, President Rajapaksa said that the strengthening of relationships between countries in Asia, and increasing cooperation amongst nations globally, is even more important today than it has been in the past, given the ongoing pandemic and its consequences.

He made a direct reference to the Port City and the Commission to be set up to govern the new Port City. The new development extending the Colombo business district to 269 hectares of reclaimed land represents an exciting new opportunity for international businesses. The Port City will be a Gateway to South Asia. It will create a vibrant new cityscape incorporating an international financial centre, a Marina district, outstanding residential and commercial facilities, as well as world class infrastructure, all within a tropical beachside paradise,” he said and added, New legislation that will ensure an attractive environment for investors and greater ease of doing business within the Port City has been prepared. Special status and a host of exemptions and special incentives will be accorded to businesses that will have a broad economic impact.”

Attracting investment 

The President expressed confidence that investors from all over the world will benefit greatly from these initiatives and from the Port City’s unique geostrategic position at the heart of one of the most rapidly advancing regions in the world. I invite all nations to encourage their businesses to take advantage of this opportunity, and to be part of what will become a key service hub to this region in the future.”

Sri Lanka is keen on encouraging investments in technology based industries. We have large numbers of qualified, experienced and skilled professionals in the Information Technology space. Our ongoing educational reforms at the secondary and tertiary levels will further enhance the prospects of our young people in this sector in future. President Rajapaksa told the fellow Asian leaders that a new legislation, including an Act on personal data protection, is being formulated to create a more robust environment that will enable global technology companies to operate from Sri Lanka. The Government has already instituted several other supportive measures towards this, including instituting a zero-tax policy for technology companies headquartered here. 

Sri Lanka also has the raw materials used in many high-tech industries in abundance. My Government is prepared to provide significant support to investors who seek to create value added industries in connection with these resources,” he said and added, we also seek investments for power generation through the use of renewable sources such as wind and solar, in keeping with our growing industrial needs and our policy of enhancing environmental sustainability.”

Strategic importance 

President Rajapaksa utilised his keynote address to enlighten the Asian leaders about Sri Lanka’s unique place in the Asian continent. Although still a developing country, Sri Lanka ranks relatively high in many social development indices. The country has a robust public health system and provides free education through to the tertiary level. We have a well-educated, highly skilled, hardworking, and capable workforce. Sri Lanka is one of the most connected nations in South Asia, with major global centres less than five hours away by air. Colombo, the commercial capital, is one of the most beautiful cities in the region and ranks as one of the very best cities in South Asia for the quality of life it provides.

As an island strategically located at the centre of the Indian Ocean, Sri Lanka has been a hub that connected the East and the West since ancient times. Today, Sri Lanka has outstanding port infrastructure that can facilitate transhipment and provide world class services even for the largest container ships. We also contribute greatly towards maintaining maritime security in this region, helping protect vital sea lines of communication on behalf of all nations.

We are determined to safeguard our national interests based on friendly, cooperative interactions with all our partners on equal terms. We follow a neutral foreign policy. We aim to harness the advantages of our strategic location to develop our economy and uplift the wellbeing of our people in a sustainable and equitable way. We seek to significantly strengthen our bilateral relationships with all countries, and in particular with our partner countries in the Asian region in terms of trade and investment,” he said.

President Rajapaksa, in reply to a question asked by Nikkei moderator Go Yamada on balancing India and China. The President explained that cooperation with China is on par with overall economic and commercial trajectories. While we are aware of world power rivalries and regional power dynamics, our foreign policy is neutral. We consider India our closest neighbour and a long-standing friend and we understand their security concerns and sensitivities. We will never allow anyone to use Sri Lanka to jeopardise India’s security,” he said.

The new Port City Colombo, a joint venture with the state and China Harbour Engineering Corporation has 100 hectares of land ready for construction. In the next five year strategic plan 20 plots in total of 60 hectares of land adjacent to Colombo’s central business district have been identified for the pilot projects.

Colombo Port City Commission will be vested with powers to approve investments without going to the Board of Investments, give tax breaks and regulate businesses in the most far-reaching ‘one-stop-shop’ designed so far. It is expected to address several problems in Sri Lanka’s ease of doing business indicators that had kept back foreign direct investments.

A spokesman for CHEC Port City Colombo said 40 out of 74 buildable plots of land are allocated for commercial development which will bring investments and business activities while 34 plots are for residential use. Out of 269 hectares reclaimed, China Harbour will get 113 hectares, 91 will be common areas vested in the Government and the balance 60 odd hectares are land the Government can sell and earn revenue.

In designing the Port City plan, significant emphasis was given to create a vibrant business hub district, because of its extension to the existing central business district of Colombo.

It is no secret that Sri Lanka’s current economic growth would not be sufficient to drive demand. Therefore businesses had to be attracted to Phase One to drive activity. Sri Lanka is primarily seeking foreign investments through dollar inflows, but domestic businesses would also be allowed to buy land to gain a foothold within the Port City.

International trade, logistics operations, hospitality and tourism are considered natural strengths of Sri Lanka. The Port has identified ICT/ BPM, offshore banking, private equity, wealth management and investment banking as priority sectors.