Sri Lanka is planning to build Colombo port city as the country’s first SEZ for services

 In September 2014, Chinese President Xi Jinping and then Sri Lankan President Mahinda Rajapaksa jointly inaugurated cooperation project Colombo Port City, which planned to reclaim 269 hectares of land from the sea to build a brand-new central business district (CBD) integrating finance, tourism, logistics and information technology for Sri Lanka’s capital Colombo.

Colombo Port City “a landmark project” says Sri Lanka PM

On Sept. 17, Rajapaksa, now Sri Lanka’s prime minister, joined the celebration of the sixth anniversary of the project’s groundbreaking ceremony, where he called Colombo Port City “a landmark project.” It will be “the main income generator for the future of Sri Lanka” to create 83,000 direct jobs and many more indirect job opportunities for Sri Lankans, he said.

Colombo Port City has powered through a turbulent six-year period

As a flagship joint project between Sri Lanka and China within the framework of the Belt and Road Initiative, Colombo Port City has powered through a turbulent six-year period, overcoming numerous challenges, including the Easter bombings in April 2019 hitting three luxury hotels near the project and affecting the country’s tourism, as well as the COVID-19 pandemic impacting the country less than a year later.

This project to be constructed together with investors from all over the world

“Because this land is close to the core area of the Colombo CBD, we are very confident that we can create a new CBD area for Sri Lanka,” Yue said.

“We hope to develop and construct this project together with investors from all over the world, so that the Port City will contribute immensely to the future of Sri Lanka,” he added.

The project has great potential for boosting Sri Lanka’s economic development

Ajith Nivard Cabraal, state minister of money and capital market and state enterprise reforms, told Xinhua that the project has great potential for boosting Sri Lanka’s economic development

Port City successful will invariably have a major positive impact on our foreign reserves and balance of payments

“If we can make the Port City successful and attract the required foreign investments, that will invariably have a major positive impact on our foreign reserves and balance of payments,” Dimantha Mathew, head of research at Colombo-based investment bank First Capital Holdings PLC.

According to a study by Colombo-based think tank the Lakshman Kadirgamar Institute, Colombo Port City compares favorably with similar special economic zones in terms of sustainability and accessibility.

“Sri Lanka performs well overall in terms of supply-side factors such as the provision of electricity. The country compares comparatively strongly in terms of graduates’ skill set, which is an important determinant for Port City’s success,” the study said.

Project is more for the future generation to be born said Rajapaksa

Rajapaksa also expected Colombo Port City to become the main financial and economic hub for Sri Lanka and South Asia.

“The project (is) rather not for the present, but it is more for the future generation to be born,” he said.