In The Press
Key to greater FDI and development - (PART II)

The definition for a separate state was stipulated in the Montevideo Convention which came into force in December 1933 among Latin American countries and the United States and is now considered a part of International Law. The criteria for statehood according to the Convention are that a state must possess a permanent population, a defined territory, a Government, and the capacity to conduct international relations. As far as the Colombo Port City (CPC) is concerned none of the conditions required to fulfil this has been found.
Justice Minister Ali Sabry, PC, claimed that the Port City is very much a part of the Colombo administrative district but then there are arguments that the Bill should go before the Western Provincial Council for approval. Gamini Marapana, President’s Counsel, however, rejected this contention when he said since the Provincial Councils are not in operation the argument does not arise with regard to the Colombo Port City. This is a point that the Supreme Court, the Apex Court looking into the constitutionality of the Bill, will look at.
In the meantime, the Government should also take a close look at Clause 7 and Section 4 subsection 2 of the Colombo Port City Economic Commission (CPCEC) Bill which respectively states that
The Bill provides for the establishment of a Commission consisting of five to seven persons appointed at the sole discretion of the President;
The Commission shall, in consultation with the Project Company, and with the concurrence of the President or in any event that the subject of the Colombo Port City is assigned to a Minister, with the concurrence of such Minister, identify any amendments to the Master Plan, and if such amendments are considered necessary in the national interest or in the interest of the advancement of the national economy, to ensure through its viability the enhancement of the businesses carried on, in and from the Area of Authority of the Colombo Port City.
These apart, the former Central Bank Governor Dr. Indrajit Coomaraswamy took a closer look at the CPCEC Bill and emphasised the need to compare it with the provisions of the Greater Colombo Economic Commission (GCEC) which had more autonomy in terms of infrastructure, taxation, customs etc.
Dr. Commaraswamy’s observations are as follows.
“Several countries have overcome ideological, political or capacity-related constraints to improve their business climate by creating special economic zones/ enclaves. Foreign Direct Investment (FDI)-driven export growth has often been the key to accelerate the growth and employment generation trajectory of an economy. This has been the case for countries as large as China or as small as Singapore and also, for more centrally-planned economies such as Vietnam, or more market-oriented ones. Special zones have been a useful mechanism for attracting FDI and promoting exports as they present a more manageable prospect for pushing through policy, structural or institutional reforms which are more difficult on a national scale.
Shannon, in Ireland, provided an initial template for setting up special zones. Sri Lanka was one of the early movers in the developing world when it implemented the GCEC Act.
The GCEC had a great deal of autonomy in terms of infrastructure provision, taxation and customs. It would be good to compare the GCEC Act with the current CPCEC Bill in terms of their respective provisions concerning these matters.
An important dimension of this comparison should be how matters related to public finance (both revenue and public expenditure) are handled in terms of Parliamentary oversight. Any resources that have an impact on the Consolidated Fund would normally involve Parliamentary oversight. One would need to examine the constitutionality of avoiding Parliamentary oversight in such circumstances.
In a country where revenue collection is severely challenged (less than 12 percent of Gross Domestic Product (GDP) when peers mobilise over 20 percent), it is questionable whether such generous tax concessions are necessary.
There is a large volume of research which demonstrates that tax concessions are not an important determinant of the location of investment. There are several other more significant considerations. Sri Lanka built up its vaunted social indicators by consistently collecting 20–21 percent of GDP. In a recent op-ed, Professor Mick Moore pointed out that revenue constraints lead to loss of sovereignty as Governments are forced to accept external conditions to raise the financing they require.
Careful consideration should be given to the provisions in the Bill relating to the legal and regulatory functions of the Commission and the entities under it. They should be aligned with good practice elsewhere, particularly about the nexus between oversight functions within the zones and outside it.
The Bill should set out the mix of expertise and experience that should be reflected in the composition of the Commission. It should be built into the Bill as much as possible to ensure that the appointments are based on professional merit rather than political favour. One way of doing this is to provide for bodies such as the Charted Accountants of Sri Lanka, Bar Association of Sri Lanka, and Association of Professional Bankers to recommend (or even nominate) representatives for the Commission. This may not be perfect, but it is better than leaving it to individual politicians.
Entities such as the Central Bank of Sri Lanka, Attorney General’s Department, Securities and Exchange Commission and Financial Intelligence Unit should have senior ex-officio membership of the Commission or key entities under it.
All provisions of the proposed Act should be carefully screened to ensure that they do not discriminate unduly against the rest of the economy.
I should also point out that taxation serves to transfer some of the benefits accruing from the Colombo Port City to the population at large. This is important given that tax collections would have assisted in financing the infrastructure and educating/ training workers for the CPC.”
A recent Price Waterhouse Coopers (PWC) report states that the Sri Lankan economy stands to gain from the proposed Colombo Port City.
Extracts from the study -
“At present, Sri Lanka receives around US$ 1–1.5 billion through FDI annually. Hence the expected flow of FDI would be sizable and it is expected that Sri Lanka will be well-positioned for attracting FDI due to Port City Development. Moreover, it is expected that there will be a spillover effect as well where the Port City may encourage FDI flows outside the project. Taken together, the Port City should be a key driver in attracting FDI in future Sri Lanka.
Government revenue will be derived through several channels during the development of the Port City. At the land reclamation and common infrastructure development stage, the Government may incur some costs for providing certain infrastructure facilities to the outer border of the Port City namely electricity, water, and road access etc.
Some concessions and exemptions given on import duty may have a negative impact on Government revenue (in terms of loss of royalty payments for sands, and import of material etc).
Besides, in each operational year, the Government could receive revenue worth US$ 800 million from income taxes, import duties, and license fees etc. Taken together, the Port City will be a good source of revenue generation for the Government and would certainly support the Sri Lankan Government in increasing its expenditure on development and welfare activities elsewhere, along with reducing the dependency on borrowing. However, it should be noted that the estimates were based on the prevailing/proposed tax rates and any exemptions or concessions provided for the operators within the Port City may lead to a reduction in tax revenue.
The economic impact assessment which captures both direct and indirect effects clearly indicates that the Port City would have a significant impact on the national economy in terms of employment generation, attracting FDIs, GDP contribution, BOP (Balance of Payment) and Government revenue when it progresses as envisaged.
The Port City could be classified as a strategic investment project and a potential source and driver of economic growth and development for Sri Lanka. Such investment projects elsewhere in the world have historically played a significant role in transforming developing economies into more advanced ones.
One of the key determining factors in achieving the expected result would be the pace of the city development process and the enablement of its smooth functioning. Delays in construction, as well as the red tapes to functioning, could significantly lower the economic potential. In this context, it would be beneficial to have a clearly defined regulatory policy framework for the Port City, as this would support the achievement of the aforementioned economic targets. It is important to highlight that in addition to the impact on economic growth, any negative developments and barriers could affect the attraction of FDIs to the Port City project and other investment projects in Sri Lanka.”
The Port City in short gives an explicit picture of how Sri Lanka could develop its economy to go forward in the global economic melee and stand as a steadfast economy in the developing world.
- Port City Colombo Commission Act - Special Economic Zone
- Colombo Port City: Wake up, dream on to reality – Part 1
- Stock Exchange signs MoU with CHEC Port City Colombo
- Port City Commission will act without fear or favour
- Colombo Port City clears first hurdle
- The SL state’s enduring role in the CHEC Port City Colombo project
- Port City Colombo donates 20 laptop computers to the Colombo Municipal Council for use at vaccination centers
- Port City Colombo donates high flow oxygen therapy machines to aid the battle against COVID-19
- Port City a hub for regional growth
- Sri Lanka – the Ideal Investment Destination
- Litigation against Sri Lankan parties will happen as usual within Port City
- Port City Would Increase SL’s Share in Modern Services - Aluwihare
- Colombo Port City blitz at NY Times Square
- President appoints three young private sector leaders to Port City Commission
- Gamini Marapana, PC, to head Port City Commission
- Port City Colombo donates PPE worth Rs. 2 mn to support cleanup of ship fire debris
- Colombo Port City Economic Commission Bill comes into force
- Two-thirds NOD for Port City Bill
- Port City Colombo invites local, global companies to set foot on ‘Gateway to South Asia’
- Parliament passage for Port City
- Biz tycoon Harry J visits Colombo Port City
- The Energing International Legal Landscape and Unprecedented Opportunities for Young Lawyers
- Investor’s paradise at Port City Colombo
- Colombo Port City vs Dubai International Financial Centre
- Key to greater FDI and development - (PART II)
- Way forward for the proposed Colombo Port City Economic Commission Bill
- Key to greater FDI and development
- Colombo Port City - Sri Lanka’s portal to the global financial economy
- South Asia to remain fastest growing region- ADB
- Like Singapore to ASEAN and Hong Kong to China, Colombo Port City is gateway to South Asia
- Colombo Port City, a Special Economic Zone
- Work of region’s most modern int’l Yacht Marina complete
- Work of region’s most modern int’l Yacht Marina complete
- ICCSL says Port City will be significant for Sri Lanka
- The Port City we need
- Book launch of ‘Foreign Policy Perspectives- Port City Colombo and International Financial Centre’
- Colombo Port City Economic Commission Bill presented to Parliament
- Govt. gazettes Colombo Port City Economic Commission Bill
- Project company welcomes Cabinet approval to establish Special Economic Zone at Port City
- Top Russian billionaire visits Colombo Port City
- Rs. 1 million worth school bags to 1,000 students in Monaragala from Port City Colombo
- Port City Colombo donates PCR equipment and testing kits valued at over Rs. 20 million, aiding the fight against COVID-19
- Port City – Colombo attracts world’s top investor Nathaniel Rothschild
- Cabinet gives approval to draft Colombo Ports Commission Bill
- Colombo Port City Special Economic Zone to break ground in mid-2021
- Browns and CHEC join forces for $ 450 m CIFC
- Port City Colombo's Competition Winners
- Raja Edirisuriya appointed new Executive Project Management Director for Port City
- Envision the Future - Local Designs with Global Identity – Port City Colombo announces the finalists for Sculpture Design Competitions
- China-funded Colombo Port City good example of public-private partnership: Sri Lankan minister
- Gotabaya brings National Priority Program under Presidential Secretariat
- Port City Colombo wins Global Best Project at 8th ENR Annual Awards
- Govt. Assures Law for Port City Will be Ready by 2020 end – Head of Strategy CHEC Port City, Tulci Aluwihare
- Colombo Port City, generator for Sri Lanka's future economic development
- Sri Lankan PM visits Chinese-built Colombo port
- Sri Lankan PM tours Port City, eyeing rosy future
- Port City will generate over 83,000 jobs - PM
- PM tours Colombo Port City Project on its 6th anniversary
- Best Project, Airport/Port Colombo Port City Development Project Phase 1
- Port City not only for Chinese investments – State Minister Tharaka Balasuriya
- Port City attracts int’l service oriented brands
- Huge demand for CIFC in region
- Colombo Port City and the big picture of US sanctions on Chinese firms
- Chinese builder says US blacklisting has no impact on Port City
- Chinese builder says US blacklisting has no impact on Port City
- A legislative design to attract investors to the Port City and CIFC after COVID-19
- PORT CITY TAKES SHAPE
- Colombo International Financial Centre Bill expected to be presented to Cabinet shortly
- Belgium, Singapore, Japan and Korea signal willingness to invest in Port City
- Port City Colombo Launches A Design Competition For A Beach Sculpture And An Interactive Wall
- Port City Colombo invites university students for remarkable competition
- Work on 10 Colombo Port City bridges expedited
- Port City review committee hands over final report to PM
- Port City SEZ laws ready by year end
- Cabinet approves $ 1 b project for Port City
- Public recreational area of Port City to open next year
- Port City to resume construction in full swing from mid-July
- Project company to pump in additional US $ 1bn to Port City
- Special Laws for Port City by Year-End - CHEC Strategy Head
- Port City will put SL on the map for services exports - Wignaraja
- Daily cleaning programme for Lassana Werala
- Chinese President Xi calls for President Gotabaya Rajapaksa
- Lanka’s post COVID-19 economy will boost with FDI influx - Bandula
- Business reopens to a world of new challenges
- The Belt and Road - Beyond the Debt Trap Discussion
- Lanterns sway in Sri Lanka's Port City Colombo on Vesak Day
- Is the 'Health Silk Road' a 'debt-trap' of China's BRI for Sri Lanka?
- Port City Colombo provides protective gear worth over Rs. 6 m to personnel in essential services
- No more trips to Singapore for arbitration
- Colombo Port City - Competing with international financial centres
- Port City could have US $ 4.6bn positive impact on SL’s BOP - PwC study
- Port City land likely to be priced above Rs.13mn per perch- PwC report
- Port City Colombo project sees rapid progress - Artificial beach to open in August
- International road shows to promote Port City
- Port City’s first overseas launch in Singapore this July
- New authority under President considered for Port City
- President makes observation visit to Colombo Port City
- CILT members visit CHEC Port City
- Chinese intellectual says cultural values drive Belt & Road Initiative
- Private sector wants govt. to play facilitator to fully harness BRI potential
- China built Port City in Colombo invests US$800mn, marina on track
- Port City creates social value for Sri Lankans
- Colombo Port City geared to key investments
- Port City unveils inaugural Social Responsibility report
- Port City marketing campaign likely after May
- New Banking Act from 2021
- Port City Colombo launches year-long project to clean-up Sri Lankan beaches
- Port City Colombo commits to maintain a cleaner beach
- Port City Colombo to welcome 2020 with captivating fireworks display
- Feature - Colombo Port City workers take pride in creating new land for Sri Lanka
- Port City Stamped into the Urban Fabric of Sri Lanka
- Port City opens for investors
- Sri Lanka to firmly support, accelerate Port City development-PM
- Professor Chandra Embuldeniya says, the Colombo Port City will become a “vital economic centre” in the region
- Interview- New Sri Lankan gov't ready to cement friendship with China, says PM
- Colombo Port City opens
- Port City to light up skies, as it becomes part of Sri Lanka
- Sri Lanka needs modern laws to bring investments to Port City- Basil
- Port City Colombo signs MOU with NSBM Green University Town for industry partnership programme
- Colombo Port City has potential to become most advanced smart city in Asia- Hans
- Top architect calls for urgent measures to revitalise Colombo Fort to integrate with Port City
- Right policies, incentives key to tap transformative power of Port City, says real estate expert
- Port City now fully Sri Lankan owned - Tenders called for int’l meeting hall, school, hospital
- Colombo Port City land officially vested in Sri Lanka's Urban Development Authority
- Sri Lanka makes case for foreign investment
- Port City land sales to begin first half of next year
- Colombo Port City celebrates Children’s Day
- Port City could be game changer - Malaysian property leader
- Lord Naseby visits Colombo Port City
- Private sector insights to connecting dots in Sri Lanka’s development journey
- Learning Chinese language and culture through the Mid-Autumn or Moon Festival
- Construction of first elevated highway from Colombo Port City begins
- Port City - New legislation to provide titles for lands
- Sri Lanka to call investors for convention hotel, hospital on China reclaimed land
- CIFC draft law to be submitted to Cabinet this month
- Port City to transform condominium living
- Colombo Port City declared as urban development area under UDA
- Special Port City Law in final stage - Dr. Harsha De Silva
- Colombo’s property value to rocket following completion of mega project
- Colombo Port City Infrastructure development to be completed by mid next year
- Traders advised to invest in CHEC Port City Colombo
- Advantages of SL's Port City
- The green way to live
- Spotlight- Sri Lanka eyes int'l market opportunities in Colombo Port City
- Port City now part of Colombo District
- Port City now part of Colombo District
- Sri Lanka's Parliament approves mega Port City as part of island country's capital
- Laws to amalgamate Port City to Colombo
- Port City completes Rs. 500 m livelihood support program
- Liang Thow Ming speaks at Members Meet
- CHEC motors ahead on Port City after Easter attacks
- Sri Lankan youth win at ‘Silk Road & Young Dreams’ music competition
- Mega project aims to transform city into global center
- Separate Legislations on Port City by mid May
- Port City gets ISO 9001:2015 certification
- PM visits Port City
- Tax and policy incentives for Port City soon
- New entity to handle Port City land sales
- Port City to become catalyst for banking sector to reach Rs.30tn in assets by 2025
- Colombo Port City - Bidding process to be completed by May
- A new City in the making
- Sri Lanka’s China funded Port City completes land reclamation amounting to 269 hectares
- Port City is here for all!
- Colombo Port City land sales to begin from June onwards
- Port City sponsors book on social etiquette
- Port City Development Project SL Govt would have to invest in infrastructure facilities – Megapolis Minister
- Colombo, a world class ‘Smart City’ soon
- Sri Lanka is building a $15 billion metropolis meant to rival cities like Hong Kong and Dubai
- Sri Lanka’s Chinese backed US $ 1.4 Bn, 665 Acre Port City could be Governed by Own Legal System – Report
- Sri Lanka ‘Port City’ marine construction work over by mid-2019
- Financial City legislation to be presented to parliament this year
- China-built Sri Lanka ‘Port City’ aims to lure Indian investors
- Govt. to invest $ 1 b on utility services in Port City
- Colombo Port City catalyst for future development-RIU
- Port City land reclamation to conclude by June next year
- Port City’s Fishermen Livelihood Support Society Gifts Rs. 16 million To 8 Village Fishery Associations in Negombo and Wattala
- Port City Dredger rescues drowning deep sea fishermen
- A future hub for trade and logistics in the Indian subcontinent
- Port City to give new facelift to Colombo
- Right of Reply by Megapolis Ministry The consequences of building Port City
- Sri Lanka releases new map with China-backed port city projects
- New Colombo map released
- Port City funds dansala in Kepungoda
- Feature: Hearts bound together, city built together -- China, Sri Lanka co-develop Colombo Port City
- Port City to create 83,000 jobs for Lankans
- Sri Lanka's China-backed Port City Sees Up To $4 Billion Investment Interest
- Standard Chartered Bullish On Port City Investments
- Urbanisation – A strategy to increase GDP
- Reclaimed Port City Ready To Reap Results
- Colombo Port City journey begins with the unveiling of DCR
- Port City unveils roadmap to prosperity
- Development Control Regulations of CPC released
- Port City and the future of Sri Lanka
- The city of yours Future is rising.
History is Looking at you for a name. - Response of CHEC Port City Colombo (Pvt) Ltd
- Financial City never sleeps
- Investment opportunities in Colombo Port City showcased
- Sri Lanka’s special Port City legislation to be presented soon
- Colombo will not sink due to Port City: Ranawaka
- Renovated community centre for Negombo fishing community
- Sri Lanka signs two MOUs with China for building complex in Port City, underground Marine Drive
- Sri Lanka signs two MOUs with China for building complex in Port City, underground Marine Drive
- Port City Where are we now?
- Port City reclamation to be completed by 1Q - 2019
- Port City construction in full swing
- Construction of three towers at Colombo Port City to begin soon
- Port City legislation to Parliament in March
- PM visits Port City
- Underground sea road: Study to be completed by March 2018
- Cabinet nod for $ 1 b financial city complex
- Govt. green-lights PPP for Port City tunnel link
- The Port City Project: Where Things Stand Now
- Govt. green-lights PPP for Port City tunnel link
- Green port city, with solar and wind power
- SLLRDC officials make tour on board Port City dredger
- Port City: Measures proposed to reduce air and noise pollution
- Negombo lagoon gets facelift
- Port City Project sustainability beyond philanthropy
- President’s Chief of Staff visits Port City Colombo
- Port City investor pumps in $1bn for Financial City complex
- Of NGOs, civil society and investors at large
- Building paradise: Houliang Jiang, MD of CHEC Port City Colombo
- Port City Colombo sponsors island-wide beach clean-up
- About 6.4 MT waste emptied to oceans yearly: Amaraweera
- Best of all cities
- Sri Lanka says Chinese-funded port city project to attract 1 bln USD of investment in next stage
- Port City and MTI collaborate to develop Sri Lankan entrepreneurship
- Government agencies review Port City progress
- Colombo Port City: Designing And Connecting Two Cities
- Port City facilitates health camps for fisher families
- Stop-Start Port City, OBOR flagship project, on again
- Colombo Port City leads with Urban Design Idea Competition
- Colombo on par with top world cities
- SOM Wins International Design Competition for Colombo Port City Master Plan in Sri Lanka
- Enclaves Of Elegance And Charm
- Over 45 percent of reclamation work completed
- Real Estate Plays Major Role In Sri Lanka’s Growth - Jll Report
- Nara To Monitor Aquatic Resources In Port City
- ‘One Belt, One Road’: Potential benefits for Sri Lanka’s real estate market
- Chinese companies continue assisting Sri Lanka flood victims
- Colombo Port City to attract US$ 15 bn when complete
- Colombo Port City and Megapolis discuss LRT plans
- US firm wins design competition held for the China-funded and executed Colombo Port City
- Sri Lanka charges ahead
- Lanka sees unprecedented economic revival: PM in Beijing
- Sri Lanka PM eyes increased infrastructure investment from China: Xinhua
- Roll up sleeves and work on B&R— Story of Sanjeewa: employee of CCCC Colombo Port City project
- China to build Colombo CBD under ‘Belt and Road Initiative’
- Chinese developers of Colombo Port City look for prospective investors
- CPC To Unveil In 30 Years With Aggressive Development
- Colombo Port City will take 30 years to complete
- CHEC Port City Colombo to transform Diyawanna Lake for Vesak
- China's US$15bn reclaimed city in Sri Lanka targets investors from the West, India, Middle East
- Port City to avert excessive presence of Chinese investors
- Port City’s revamped Website offers Clarity and Transparency
- One Belt & One Road Initiative: Beyond physical infrastructure
- Ranil determined despite looming external shocks
- Financial sector needs to be future-ready to ride the next wave
- CEA Chairman goes on board Port City dredger
- China-funded Colombo Port City becoming "shining pearl of Indian Ocean"
- Colombo Port City, Sri Lanka
- Redrawing the map of Sri Lanka
- Port City In The Making
- Chinese-backed Port City in Sri Lanka to attract $13bn in investment from 2018
- Chinese-backed Port City in Sri Lanka to attract $13bn in investment from 2018
- Luxury apartments boom not a bubble
- Taking a break
- Port City facilitates workshop to improve fisher folk’s income
- Fast-changing Colombo landscape
- Science is the best outpost for attack or defense Port City Project
- MPs on inspection tour of Port City site and dredger
- Extra land for public use
- Parliament approves several orders under Strategic Development Projects Act:To grant tax exemptions to Port City Project
- New Laws for Port City – Malik Samarawickrama
- Economists, Experts Air Their Views : Port City Project
- Colombo Financial City Project: NO IMPACT ON FISHERIES INDUSTRY: NARA
- Marine life not affected by Port City Project
- Colombo Int’l Financial City work in progress
- Tax exemptions for CHEC Port City project
- Prime Minister endorses Port City
- Mark Mobius shares his mantra for Sri Lanka
- SL contemplates standby agreement with IMF-PM
- Western Region Megapolis Plan to be unveiled in Jan 2016
- Sri Lanka's Prime Minister shows green light for port city after long haul back
- Environmental report clears Colombo Port City
- Colombo Port City public usage area increased
- Port City’s public area gets wider under EIA plan
- Sri Lanka's Colombo Port City will be eco-friendly, assure constructors
- Chinese-funded port city to help generate new businesses: report
- Colombo Port City won’t cause environmental disruption, says EIA
- Chinese company notes Port City will help Lanka
- Port City to create regional business hub
- Port City To Be Expanded
- Port city project will resume under new agreement
- China, India and Hong Kong top investors in Sri Lankan real estate- Lamudi
- Colombo Port City Development Project to generate over 100,00 jobs
- Presidents launch port city project
- Chinese President Xi Jinping launches $1.4 billion Sri Lanka port city
- Colombo Port City Project Launched