The Chinese company behind the Colombo Port City project, has welcomed the Cabinet decision to publish the Colombo Port City Economic Commission Bill on the Government gazette.
Cabinet approval was granted this week following a proposal made by President Gotabaya Rajapaksa.
In January the Cabinet had approved a proposal to establish the Colombo Port City Special Economic Zone which will be an International business and services hub with specialized infrastructure facilities.
This week the Cabinet approved the proposal made by President Gotabaya Rajapaksa to take necessary steps to publish the relevant bill on the Government gazette and submit it to Parliament shortly.
Port City investor company, CHEC Port City Colombo (Pvt) Ltd. welcomed the Government’s move and expects this initiative will bring more Foreign Direct Investments to Sri Lanka.
“The Colombo Port City Special Economic Zone is expected to create a conducive and competitive environment in attracting foreign direct investment (FDI),” the Chinese company said.
The company noted that Urban Development via SEZs is not unique to Sri Lanka and that there are many successful SEZs in the world.
An SEZ will offer relief from various forms of taxation on businesses and individuals who qualify. They also offer superior infrastructure and have streamlined administrative processes in place that results in ease of doing business.
SEZ’s have been a useful tool for developing nations to upgrade infrastructure, human capital and institutional frameworks and test out policies and their impact before they are selectively implemented outside the SEZ in the rest of the country.
“The establishment of a well-positioned SEZ will benefit the nation by upgrading resources and capabilities where policy makers can overcome bottlenecks in resource mobility and attenuate the costs of larger scale implementation or upgrading across the entire country. A successful SEZ sends an important signal that the country is open for business,’ CHEC Port City Colombo said.
It is expected that the SEZ will attract multinational enterprises to set up headquarters or regional offices in Port City and in turn they will bring in financial recourses, technology, technical and managerial know-how.
“We hope the establishment of a SEZ will accelerate Sri Lanka’s economic growth. A realized master plan for the Port City provides 5.7 million square meters of built up area valued at $15 billion that will be home to multinational enterprises, corporate headquarters, transient workers, and residents. It will be the catalyst for a modern services hub that will help Sri Lanka’s transformation into a services-led growth model and elevate the economy to high-income status,” CHEC Port City Colombo said.
Port City Colombo is a brand-new city development built as an extension of the existing Colombo CBD, with a total reclaimed land mass spanning 269 HA. (Colombo Gazette)