Colombo_International_Financial_City

Port City Colombo

Port City Colombo

Place in Colombo, Sri Lanka

Port City Colombo (Official name: Colombo Port City), (Sinhala: කොළඹ වරාය නගරය, romanised: Koḷam̆ba Warāya Nagaraya) is a multi-services special economic zone located in Colombo, Sri Lanka, which is currently under construction on reclaimed land adjacent to the Galle Face Green. The land reclamation work had been completed as of January 2019. In 2017, the cost was slated to be US$ 15 billion. Port City Colombo is a multi-billion-dollar FDI-funded Public Private Partnership (PPP).

Quick Facts කොළඹ වරාය නගරය, Country ...

Port City Colombo aims to facilitate connections to the South Asian market through investment opportunities, international business environments, world-class infrastructure, and high-quality sustainable living.

Upon completion, Port City Colombo will feature five distinct precincts: the Financial District, Central Park Living, Island Living, The Marina, and the International Island. The city will additionally encompass over 6.4 million square metres of new developments in residences, healthcare, education, entertainment, hotels, restaurants, retail, and commercial complexes.

In May 2021, the Parliament of Sri Lanka approved the Port City Commission Bill to establish the Colombo Port City Special Economic Zone and Economic Commission. Under this law, companies can be exempt from all taxes, personal, corporate, excise, import, and every other tax for up to forty years.

Geography

Port City Colombo is located in the metropolis of Colombo, Sri Lanka, which is positioned within South Asian trade routes. The master planned city is to be constructed between the southern edge of the new Colombo South Port and the Fort Lighthouse. The total area of ocean seabed to be reclaimed is 269 ha (660 acres).[1][2]

Special Economic Zone (SEZ)

As a Special Economic Zone (SEZ) governed by the Colombo Port City Economic Commission, Port City Colombo aims to be a business-friendly environment for investors. The SEZ includes tax incentives and exemptions of up to twenty-five years for Businesses of Strategic Importance (BSIs), transactions in 16 designated foreign currencies with no capital or exchange controls, 100% foreign ownership of businesses, 100% capital and profit repatriation, and flexible employee management practices. Employees will additionally benefit from 0% personal income tax, remuneration in foreign currency, and the provision of preferential visas of 5–10 years (for spouses and children).

The Colombo Port City SEZ plans to carry out business operations in key service-oriented sectors such as IT/ITes (IT-enabled services), finance services, shipping logistics and maritime services, professional services, corporate headquarters operations, tourism, entertainment, and sustainable development.

Feature Developments

Future developments at Port City Colombo are focused on creating a favourable environment for business, investment, and lifestyle. Some of these include:

  • Colombo International Financial Centre (CIFC)
  • Luxury Yacht Marina
  • International school
  • International university
  • Convention Centre
  • International hospital
  • Integrated resort
  • Luxury villas
  • Luxury marina residence
  • Luxury beach resort
  • Iconic hotel
  • Marina hotel
  • Downtown duty-free facility

Background

The Port City was claimed to be a concept of President Mahinda Rajapaksa, who was apparently inspired while inspecting the landfill being constructed for the Colombo South port.[3][4][5] The modern Port City Colombo was based on a concept proposal submitted by China Harbour Engineering Company[6]

Construction works at Portcity

The construction was set to begin in March 2011 but due to several circumstances the project was put on hold. In mid 2012, the Sri Lankan Ports Authority (SLPA) announced that the construction of the then Port City Colombo project would commence on 17 September 2014. The budget was estimated to be $1.4 billion.[7]

The reclamation was to be carried out by China Harbor Engineering Corporation, who has been engaged by the investor.

Construction of the Colombo Port City project was launched on 17 September 2014 by Former Sri Lankan President Mahinda Rajapaksa and General Secretary of the Chinese Communist Party Xi Jinping.[8]

Colombo Port City (land reclamation) seen from Galle road.

The Port City Colombo was suspended after the fall of the Rajapaksa government in 2015 due to alleged claims related to sovereignty of Sri Lanka and adverse environmental impacts.[9][10][11]

The Port City Colombo is governed by an independent authority and will not be subject to the Colombo Municipal Council. A special legal framework would enable it to operate on a subset of commercial law, in terms of contracts and commercial transactions with its own Special Colombo oFinancial Court serving as the court of first instance and provision of appeal to the Supreme Court of Sri Lanka. It would have its own international commercial dispute resolution center for arbitration proceedings.[12][13]

Land reclamation

Port City Colombo consists of around 269 ha (660 acres) of reclaimed land where all land titles are vested with the Government of Sri Lanka.

Land reclamation in November 2015

At a question and answer section in July 2018, the Prime Minister stated that the land reclamation would be finished within one year and that construction should begin by next year, and that the government seeking assistance in establishing the legal construct for the administrative area.[14] This was successfully completed in January 2019 according to the Ministry of Megapolis and Western Development.[15]

The project was around three months ahead of its targeted completion as of January 2019.[16]

Basic infrastructure

China Daily reported in April 2019 that the hydro structural construction would be complete by the middle of 2019, with the construction of municipal facilities being completed by July 2020.[17]

The Road Development Authority had sent approval for the new road network and piling work had begun for the nine bridges by January 2019.[18]

Investments

By December 2020, Sri Lankan conglomerate LOLC Holdings leased out five land parcels amounting to $200 million and signed an agreement with China Harbour Engineering for a mixed development project, with the investment value totaling $1 billion. The project includes residential, commercial and retail assets set to break ground in mid-2021. This is the first major investment in Port City Colombo.[19]

FinTech hub

Fintech Association of Sri Lanka (FASL) has launched an initiative to draft a report titled, ‘Enhancing Colombo International Financial City (Port City Colombo) as a Leading Fintech Hub in South Asia’ to submit to the President of Sri Lanka; the initiative is being assisted by a number of fintech experts globally and Professor Douglas Arner, Kerry Holdings Professor in Law at the University of Hong Kong (HKU) as the chief consultant.[20]

Sustainability

Before land was reclaimed for the development of Port City Colombo, Environmental Impact Assessments (EIAs) were conducted to make sure the construction of the Special Economic Zone follows sustainable practices.

The layout and the development of the city’s infrastructure are meant to support sustainability and the Port City Colombo’s master plan includes several green spaces across the plot. Development Control Regulations also incentivise developers who meet green building standards.

Port City Colombo is following eco-friendly infrastructure development practices by opting for sustainable design, renewable energy, and energy-efficient building standards. Once the construction is completed, Port City Colombo is expected to have a non-motorised transport system that encourages walking and cycling through shaded walkways and an integrated Light Rail Transit (LRT) system.

  • Construction works at Portcity
  • Construction works at Portcity
  • Construction works at Portcity
  • Construction works at Portcity
  • Construction works at Portcity
  • Construction works at Portcity
  • Construction works at Portcity

See also

References

  1. [1]
    "Port City to attract US$ 13 bn investment from 2018: company - Business News | Daily Mirror". www.dailymirror.lk. Retrieved 7 March 2024.
  2. [2]
    "Formula One Track To Be Built On Planned 'New Port City' Colombo | The Sunday Leader". web.archive.org. 2 May 2014. Retrieved 7 March 2024.
  3. [3]
    "Formula One Track To Be Built On Planned 'New Port City' Colombo". Thesundayleader.lk. Archived from the original on 2 May 2014. Retrieved 2 May 2014.
  4. [4]
    Philips, Rajan (5 December 2015). "The Megapolisation of Colombo:Is a compromise on Port City achievable?". The Island.
  5. [5]
    Wijeratne, Yudhanjaya. "This is the Colombo Port City?". www.icaruswept.com. Archived from the original on 25 December 2017.
  6. [6]
    "Critical Analyses of Colombo Port City Project". Daily Mirror. 16 December 2014.
  7. [7]
    Gamini Gunaratna, Sri Lanka News Paper by LankaPage.com (LLC)- Latest Hot News from Sri Lanka (30 July 2012). "Construction of Sri Lanka's port city to begin later this year". Colombopage.com. Archived from the original on 19 January 2014. Retrieved 2 May 2014.
  8. [8]
    "Colombo Port City Project Launched". News.lk. 17 September 2014.
  9. [9]
    "Outright land ownership to China at Port City dangerous, points out maritime sector veteran: Interview | Adaderana Biz English | Sri Lanka Business News". bizenglish.adaderana.lk. 16 March 2015. Retrieved 31 October 2015.
  10. [10]
    "Colombo Port City will be scrapped: Ranil". Daily Mirror. 16 December 2014. Retrieved 17 December 2014.
  11. [11]
    "Port city project will resume under new agreement". Colombo Gazette. 31 October 2015. Retrieved 31 October 2015.
  12. [12]
    "Sri Lanka to create special economic zone law, financial court, for Port City". Economynext. Retrieved 31 October 2019.
  13. [13]
    Sirimanna, Bandula. "Constitutional amendment required for Port city laws". Sunday Times. Retrieved 31 October 2019.
  14. [14]
    "CIFC laws before Cabinet in two months: PM". Daily FT. 11 July 2018. Retrieved 26 April 2021.
  15. [15]
    "Sri Lanka's Port City completes land reclamation". Colombo Page. 15 January 2019. Retrieved 1 May 2019.
  16. [16]
    "Colombo Port City project is of great importance to us, says Chinese envoy". Business Standard India. Press Trust of India. 16 January 2019. Retrieved 1 May 2019.
  17. [17]
    "Belt and Road projects: Past, present, future". China Daily. 22 April 2019. p. 6. Retrieved 26 April 2020.
  18. [18]
    "Tripartite agreements for Port City investments". Daily FT. 15 January 2019. Retrieved 26 April 2021.
  19. [19]
    "LOLC and CHEC to invest in Port City Colombo". Sunday Observer. 25 December 2020. Retrieved 26 April 2021.
  20. [20]
    "Colombo Int'l Financial City as top fintech hub - FASL". Daily News (Sri Lanka). 9 October 2023. Retrieved 24 October 2023.
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