SRI LANKA ON THE CUSP OF TRANSFORMATION

Q: In your view, what are the key requirements to boost Sri Lanka’s economy right now?

A: One of the key requirements to boost Sri Lanka’s economy is to attract foreign exchange. In the near to medium term, this can be achieved through foreign direct investment (FDI). Over the medium to long term, earnings resulting from external-facing business activities should be encouraged as much as possible.

Q: Port City Colombo was built as strategic investment. What is its current state of completion?

A: Port City Colombo is redefining urban living – making spaces greener, businesses better and commutes smoother by providing high quality world-class commercial, medical, educational, entertainment, hospitality and lifestyle opportunities.

Currently, many areas at the Port City have already opened to the public – both for public use and private hire. Infrastructure development is scheduled to be completed by the third quarter of 2023, with the US$ 7 million Downtown Duty-Free Mall to be completed by December 2022.

A further business investment of 6.5 million dollars is also expected to develop the Mall, which will become a tourist attraction and position Colombo as a preferred destination for international shopping. Two international duty-free operators and an international food and beverage operator are already on board to commence operations by April 2023.

Of the total commitment of US$ 1.4 billion by the project company, 1.2 billion dollars has already been invested. We have also lined up more than 1.5 billion dollars’ worth of investments for the upcoming vertical developments within the Port City. This will include the project company’s commitment for a further investment of US$ 500 million for the Colombo International Financial Centre Phase 1.

Q: What positive impact will Port City Colombo have on the national economy?

A: Port City Colombo’s Special Economic Zone (SEZ) will have a significant positive impact on the national economy in terms of FDIs, employment generation, value addition to GDP, balance of payments and government revenue.

The SEZ aims to be recognised as an export-oriented regional business hub for multinational corporations (MNCs) through the provision of modern services including ICT, financial services, professional services, maritime services and logistics, digital education, tourism, and meetings, incentives, conferences and exhibitions (MICE). All this can be availed of in an environment where the ease of doing business will be exceptional, if not unmatched in the region.

The Colombo Port City Economic Commission is functioning as the Single Window Investment Facilitator.

Q: What role can Port City Colombo play in boosting FDIs?

A: The role of the Colombo Port City Economic Commission as defined in the Colombo Port City Economic Commission Act No.11 of 2021, is to “provide for a single window investment facilitator for the promotion of ease of doing business within the Port City Colombo SEZ; to determine and grant incentives and exemptions for the promotion of businesses of strategic importance within the SEZ.”

The Commission’s key objective is to ensure that Port City Colombo is a world-class, international, service oriented SEZ, which can attract FDIs by facilitating ease of doing business, enhancing investor confidence, promoting international trade, shipping, logistics, IT, development and entrepreneurship, tourism, generating employment opportunities, sustainable development, urban amenity operations and promoting Port City Colombo as an SEZ of international importance.

Several regulations have been published and the Commission is in the process of working with the line ministry to facilitate FDI to Port City Colombo.

Q: Which countries/companies have expressed interest in setting up operations at Port City Colombo?

A: We have received broad-based interest from regional and global players and powers including from South and East Asian Countries, the Middle East, the Far East and even the West. Some have already committed in principle and others are in the process of negotiating.

Q: What can be done to accelerate the development and completion of Port City Colombo?

A: The development itself is progressing well and we are confident that it will be completed on schedule.

– Compiled by Yamini Sequeira