Colombo International Financial City ( si, කොළඹ ජාත්යන්තර මූල්ය නගරය, translit=Koḷam̆ba Jātyantara Mūlya Nagaraya) is a
special economic zone
A special economic zone (SEZ) is an area in which the business and trade laws are different from the rest of the country. SEZs are located within a country's national borders, and their aims include increasing trade balance, employment, increas ...
and
International Financial Centre
A financial centre ( BE), financial center ( AE), or financial hub, is a location with a concentration of participants in banking, asset management, insurance or financial markets with venues and supporting services for these activities to ta ...
located in
Colombo
Colombo ( ; si, කොළඹ, translit=Koḷam̆ba, ; ta, கொழும்பு, translit=Koḻumpu, ) is the executive and judicial capital and largest city of Sri Lanka by population. According to the Brookings Institution, Colombo me ...
,
Sri Lanka
Sri Lanka (, ; si, ශ්රී ලංකා, Śrī Laṅkā, translit-std=ISO (); ta, இலங்கை, Ilaṅkai, translit-std=ISO ()), formerly known as Ceylon and officially the Democratic Socialist Republic of Sri Lanka, is an ...
, which is currently under construction on reclaimed land adjacent to the
Galle Face Green
Galle Face is a ocean-side urban park, which stretches for along the coast, in the heart of Colombo, the financial and business capital of Sri Lanka. The promenade was initially laid out in 1859 by Governor Sir Henry George Ward, although t ...
. The
land reclamation
Land reclamation, usually known as reclamation, and also known as land fill (not to be confused with a waste landfill), is the process of creating new land from oceans, seas, riverbeds or lake beds. The land reclaimed is known as reclamat ...
work had been completed as of January 2018. In 2017, the cost was slated to be
US$ 15 billion.
The project is part of China's
Belt and Road initiative
The Belt and Road Initiative (BRI, or B&R), formerly known as One Belt One Road ( zh, link=no, 一带一路) or OBOR for short, is a global infrastructure development strategy adopted by the Chinese government in 2013 to invest in nearly 1 ...
.
In May 2021,
Parliament of Sri Lanka
The Parliament of the Democratic Socialist Republic of Sri Lanka (Sinhala: ශ්රී ලංකා පාර්ලිමේන්තුව ''Shri Lanka Parlimenthuwa'', Tamil: இலங்கை நாடாளுமன்றம் ''Ila� ...
approved
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 40 years.
Geography
The finance city is to be constructed between the southern edge of the new Colombo South Port and the Fort Lighthouse. The total area of sea to be reclaimed is .
Background
The Port City
The Port City was claimed to be a concept of former President
Mahinda Rajapaksa
Mahinda Rajapaksa ( si, මහින්ද රාජපක්ෂ, ta, மஹிந்த ராஜபக்ஷ; born Percy Mahendra Rajapaksa; 18 November 1945) is a Sri Lankan politician. He served as the President of Sri Lanka from 2005 to ...
, who was apparently inspired while inspecting the landfill being constructed for the Colombo South port.
The modern Port City was in fact a fully solicited proposal submitted by
China Harbour Engineering Company
China Harbour Engineering Company Ltd (CHEC) is an engineering contractor and a subsidiary of China Communications Construction Company (CCCC), providing infrastructure construction, such as marine engineering, dredging and reclamation, road and ...
based on previous proposals.
The construction was set to begin in March 2011 but due to several circumstances the project was stopped. In mid 2012, the
Sri Lankan Ports Authority (SLPA) announced that the construction of the then Colombo Port City project would commence on 17 September 2014. The budget was estimated to be $15 billion.
The reclamation was to be carried out by China Harbor Engineering Corporation, who has been engaged by the investor. was the land was given to government as well as while owned by the government was planned to be leased for 99 years to the Chinese company. was planned to be given freehold to the Chinese company.
Construction of the Colombo Port City project was launched on 17 September 2014 by Former Sri Lankan President
Mahinda Rajapaksa
Mahinda Rajapaksa ( si, මහින්ද රාජපක්ෂ, ta, மஹிந்த ராஜபக்ஷ; born Percy Mahendra Rajapaksa; 18 November 1945) is a Sri Lankan politician. He served as the President of Sri Lanka from 2005 to ...
and
General Secretary of the Chinese Communist Party
The general secretary of the Chinese Communist Party () is the head of the Chinese Communist Party (CCP), the sole ruling party of the People's Republic of China (PRC). Since 1989, the CCP general secretary has been the paramount lead ...
Xi Jinping
Xi Jinping ( ; ; ; born 15 June 1953) is a Chinese politician who has served as the general secretary of the Chinese Communist Party (CCP) and chairman of the Central Military Commission (CMC), and thus as the paramount leader of China, ...
.
The port city has been criticised for several reasons.
Many environmentalists claim that the port city contains many environmental hazards and the adverse environmental impact of the project would be far greater than the economic benefits it may have to offer. Maritime sector veterans also pointed out the dangers Sri Lanka may face due to giving outright ownership of land to China, especially in a high-security zone, and concerns about its effects on Sri Lanka's sovereignty have also been expressed. The project was also criticized for its lack of transparency and irregularities such as the involvement of SLPA which is implementing the reclamation project, had no mandate to do so as its mandate is to deal with ports and shipping.
The Colombo International Financial Centre
The port city was suspended after the fall of the Rajapaksa government due to issues related to sovereignty of Sri Lanka and adverse environmental impacts.
* The Colombo International Financial Centre will be governed by an independent authority and will not be subjected to the
Colombo Municipal Council
The Colombo Municipal Council is the municipal governing body of Colombo, the largest city and financial centre in Sri Lanka. It consists of a directly elected executive Mayor of Colombo, current elect is Rosy Senanayake, and 119 elected 119 muni ...
. A special legal framework would enable it to operate on a subset of
commercial law
Commercial law, also known as mercantile law or trade law, is the body of law that applies to the rights, relations, and conduct of persons and business engaged in commerce, merchandising, trade, and sales. It is often considered to be a branc ...
, in terms of contracts and commercial transactions with its own
Special Colombo oFinancial Court serving as the
court of first instance
A court is any person or institution, often as a government institution, with the authority to adjudicate legal disputes between parties and carry out the administration of justice in civil, criminal, and administrative matters in accorda ...
and provision of appeal to the
Supreme Court of Sri Lanka
The Supreme Court of Sri Lanka ( si, ශ්රී ලංකා ශ්රේෂ්ඨාධිකරණය, Sri Lanka Sreshthadikaranaya; ta, இலங்கை உயர் நீதிமன்றம், Ilankai uyar neetimanram) is th ...
. It would have its own arbitration centres.
The building complex was approved for construction in December 2018.
The city will use construction resources from the
Colombo Harbour Expansion Project, currently under construction near the site of this proposed city.
Construction
The inauguration of the project was in 2014 with a revised plan inaugurated in October 2019.
It is projected that the water reclamation would be completed in around twenty-eight months.
In 2017, it was predicted that the city would be completed by 2041.
Land reclamation
The port city would require around 269 hectares of reclaimed land. 116 hectares is owned by the China Communications Construction Company (CCCC), itself owned by the China Harbor Engineering Company (CHEC), and the Government of Sri Lanka has set aside another 91 hectares for public spaces.
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. This was successfully completed in January 2019 according to the Ministry of Megapolis and Western Development.
The project was around three months ahead of its targeted completion as of January 2019.
Basic infrastructure
''
China Daily
''China Daily'' () is an English-language daily newspaper owned by the Central Propaganda Department of the Chinese Communist Party.
Overview
''China Daily'' has the widest print circulation of any English-language newspaper in China. ...
'' reported in April 2019 that the hydrostructural construction would be complete by the middle of 2019, with the construction of municipal facilities being completed by July 2020.
The Road Development Authority had sent approval for the new road network and piling work had begun for the nine bridged by January 2019.
Investments
In December 2020, Sri Lankan conglomerate
LOLC Holdings signed an agreement with China Harbour Engineering for a mixed development project, with the investment value totalling $1 billion. The project includes residential, commercial and retail assets set to break ground in mid-2021. This is the first major investment in Colombo Port City.
Criticism
Tax regime of Port City has raised concerns for
money laundering
Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdicti ...
. The opposition MP have accused China has "taken over as much as everything in the Port City."
Gallery
File:Central Park budding trees @ Portcity.jpg, Construction works at Portcity
File:Lighthouse to be a historical monument @ Portcity.jpg, Construction works at Portcity
File:Sales Gallery drive way and the Portcity from Kingsbury Hotel.jpg, Construction works at Portcity
File:View of Sambodi Chaithya @ Portcity.jpg, Construction works at Portcity
File:Basketball and foot ball court @Portcity.jpg, Construction works at Portcity
File:Industrial Machinery @ Portcity.jpg, Construction works at Portcity
File:Gantry Cranes at Work @ Portcity.jpg, Construction works at Portcity
See also
*
Sambodhi Chaithya
References
External links
{{Economy of Sri Lanka
Economy of Colombo
Proposed populated places
Offshore finance
Finance in Sri Lanka
Land reclamation