In The Press
Colombo Port City: Wake up, dream on to reality – Part 1

This article provides an overview on the recent talk of the town “The Colombo Port City”. This may appear to be mind-numbing or may not be interesting owing to the fact that it is imperative to include a few economic terms and jargon to emphasise on the real or practical meaning or the importance of the same. No theories or law points are discussed here as the intention was to shed a light on salient features and a simple understanding to layman on the Project.
It is my personal belief that many people are holding on to different opinions on the Project whether favourably or unfavourably as a consequence of unacquaintance or no or little access for right information. Some accuse China gratuitously and wrongfully portraying a ‘debt-trap diplomacy’- enticing poor, developing countries into agreeing for large scale development projects backed by unsustainable loans so that they can acquire the assets on default resulting unimpeded military reach for which the evidence are very little as oppose to the colonials we had thus far around the world.
Some are under the impression that we are a country blessed with a vast range of natural resources reserves such as petroleum, gas, uranium, gold, coal, copper and silver. And further are in the belief of that such resources are readily available for us to reap the benefits and to be secluded from the rest of the world. But the reality is that we are only in possession of graphite as a deposit of mineral and forests with least disturbed and biologically unique and very high level of diversification as natural resources.
North Korea is currently holds the largest and one of the finest available graphite reserves. However, owing to closed economic policies and as they are isolated from rest of the world, they send part of their production only to the Chinese market. Hence we are fortunate enough to be retain our position among the first ten producers in the world for graphite. Except graphite, we are not in possession of any such valuable, marketable and natural resources reserves with scale advantages. Hence, it is a must for a country like us to find alternative avenues to source dollar income.
In this sense, “The Colombo Port City” will emerge as a golden opportunity for us to make a major leap in the economy. Below are the reasons for me to bear such a view in this regard.
What is “The Port City”?
The Port City or the Colombo Port City is a man-made island (Reclaimed land) located adjacent to the Galle Face Green, Colombo which is currently under the development by CHEC Port City Colombo (Pvt.) Ltd. (CPCC). Land reclamation is a process of creating a new land raising the elevation of a water-bed or a low-lying land. The Palm Jumeirah of Dubai is a well-known and classic example for one such successful development.
Even though we call it “Port City” in short, the entity’s lawful name is “The Port City Colombo Development Project (PCCDP)”.
It is a project by The CHEC Port City Colombo (Pvt.) Ltd. with an initial investment as gigantic as USD 1.4 billion which planned in reclaiming 269Ha of land. It is planned to be utilised as a “Specialized Economic Zone” which is a new and widely used in most developed and developing economies as an investment promotion tool.
After a fairly long embryonic gestation period, the project’s land reclamation was over by 2019. Currently the basic infrastructure is being developed. As per the Development Control Regulations (DCR), the reclaimed land will comprise Gross Floor Area (GFA) of 6.9Mn sq.m. (including car parks) which includes commercial space, retail space, residential, hospital, convention, exhibition centre and hospitality with state of the art social infrastructure.
It is a Public Private Partnership (PPP - Public - Private Partnership involve collaboration between a government or its agency and a private-sector company that can be used to finance, build and operate projects) arrangement with the Government of Sri Lanka and CHEC Port City Colombo Pvt Limited to invest USD 1.4Bn in return for 99 years leasehold rights for 116Ha of reclaimed land (the total extent is 269Ha).
CHEC Port City Colombo Private Limited is a subsidiary of China Harbour Engineering Company (CHEC) and Communications and Constructions Company Limited the (CCCC) is the parent company of CHEC. CCCC is a multinational engineering and construction company with its global presence across 135 countries and possesses about 103 branches and offices to serve them. CCCC is an internationally renowned company which is listed on Hong Kong Stock Exchange and the Shanghai Stock Exchange. The CCCC was ranked as the 93rd by Fortune 500 Companies in 2019. It was positioned third by the Engineering New record (ENR) out of 250 international contractors in 2018.
The Shantou New East Coastal Area Development Project and Guangzhou Nansha New District Development Project are some most notable work done by the CCCC. The CCCC has its presence in Sri Lanka since 1998. They contributed to projects such as Southern Highway, Outer Circular Highway, Hambantota Port, Mattala Airport and Colombo South Container Terminal.
In an economic perspective, it can be envisaged that the Port City would result in having significant positive impact on creating employment, attracting FDIs, contribution towards GDP, managing BOP and increase in government income.
Employment opportunities
The reclamation, infrastructure development and attracting investors are being done now and at this stage, it is expected to create 6,400 employment opportunities and with related to construction, it will be about 160,172 man-hours (direct and indirect) and creation of skilled and unskilled job opportunities over 210,355 is expected. The job opportunities will be created in sectors such as hospitality and leisure, education, health and retail.
When looking at Foreign Direct Investments (FDIs), at the reclamation and common infrastructure development stage, it is estimated to receive USD 4.1Bn (including the initial investment of USD 1.4Bn by CPCC). Thereafter it is expected to attract USD 2.7Bn through land leases. (Rs. 13Mn p.p which may differ at the time of enacting the actual lease). During the construction stage it is planned to attract USD 5.6Bn (assuming at least 75 percent of the construction cost being foreign funded) and when the entities commenced the operations, it is expected to reinvest about USD 0.7Bn per annum back within Sri Lanka.
The value addition for GDP through the CPC is twofold; i.e. investment and consumption. During the phase of reclamation and infrastructure development, construction and leasing out the lands, it is anticipated to contribute USD 4.6 Bn and USD 13.0Bn. And through the operational stage, it is expected to have USD 11.8Bn annually mainly by the rent income of retail, commercial and residential space with the Port City.
Even though the construction stage consists of considerable outflows arising through importation of raw materials for construction, this will get offset with the recurrent rent income inflows over the space. When considering the export services, inbound tourism spending as well, we can expect the total cash flows to pave a way to a considerable positive impact towards managing Balance of Payment.
Government revenue inflows can be derived through lease rent over marketable land, import duties, income tax, value added tax, and licensing fees and expected to be around USD 0.8Bn.
Incorporating the concept of township planning, the total land extent has been divided into five distinctive zones as per the Development Control Regulations (DCR), namely the Financial District - 40Ha, Marina District - 15Ha, Central Park Living - 95Ha and Central Living - 85Ha. Upon the completion of the land reclamation, the project was officially handed over to the Urban Development Authority (UDA) in October 2019.
As mentioned earlier, a tripartite agreement has been entered in to by the GoSL, CPCC (CHEC Port City Colombo Private Limited) and Urban Development Authority (UDA and Ministry of Megapolis and Western Development).
The GoSL holds 57 percent of the reclaimed land (Common area 34%, marketable land 23% ) and as the developer and in return to the investment they made, 43% of the reclaimed land is held by CPCC on a 99-year lease basis. The CPCC is to be involved in sales and marketing and setting up the Estate the Management Company (EMC - joint venture between CPCC and GoSL to maintain common infrastructure) and the development of International Financial Centre.
The Port City Colombo the joint investment project by CHEC and GoSL will undeniably become a golden turning point of the economy of Sri Lanka.
- 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