= USD 1.2 bn has already been invested

= USD 1.5 billion more expected to flow in

= Estimated to add USD 13.7 billion to annual GDP when fully operational

= Duty-free shopping mall expected to be open to the public by April 2023

By Sanath Nanayakkare

Port City Colombo (PCC) whose infrastructure development is slated for completion by Q3 of 2023 is showing all the possibilities to be one of the key drivers of growth and recovery in Sri Lanka, a source familiar with many aspects of the project told The Island.

He said that all Sri Lankans should welcome the project and call upon the authorities to provide the fullest support to fast-track its progress.

“While critics have often referred to Port City Colombo (PCC) as a “white elephant” and a “burden of debt” on the Sri Lankan people, these claims cannot be further from the truth. In fact, PCC is not debt-funded and is actually Sri Lanka’s largest foreign direct investment (FDI) driven project. As a result, Colombo now has a platform to create an ultramodern planned metropolis with all the trappings of modern life, which can co-exist and complement the existing sprawl of Colombo. With infrastructure development slated for completion by Q3 of 2023, of the total committed investment of USD 1.4 Bn by the project company, USD 1.2 Bn has already been invested, with a further USD 1.5 billion expected to flow in during the vertical development phase, which will commence thereafter, “he said.

Elaborating on his findings, he said:

“PCC has been designated as a Special Economic Zone (SEZ), which is a legal structure in Sri Lanka, and around the world, that allows certain geographically delimited areas to enjoy special rules and regulations in order to increase ease of doing business, and promote enterprise and development. This concept is not new to Sri Lanka and Sri Lankans have seen many such Export Development Zones in the past, which have no doubt contributed positively to the country’s growth trajectory, by attracting FDIs and promoting exports and industrialization.”

“However, PCC goes beyond any other SEZ in Sri Lanka, supported by the Port City Economic Commission and its associated laws and regulations. This sets up a single management or administrative structure that can help streamline processes and improve ease of doing business dramatically within PCC, potentially even making it the most business-friendly destination in the whole region. This also makes PCC attractive to FDIs and Diaspora, while providing a venue for technological learning, innovation and development. Having separate and more efficient customs provisions also further adds to the attractiveness of PCC. Ultimately, by creating a venue for international business, local businesses will also thrive as PCC and its businesses and residents will need to buy supplies and services from local businesses.”

“Sri Lanka is a relatively small economy, which is one of the reasons that we have not been able to open up and liberalize more efficiently and quickly. Opening up a small economy to global forces can create imbalances that can quickly turn into different issues. However, PCC provides a very efficient way to open Sri Lanka up to the world, whilst shielding the wider Sri Lankan economy from any negative effects. This, combined with wider economic reforms will create a platform for Sri Lanka’s economy as a whole to open up to the world.”

“As an SEZ, PCC will be able to create massive employment opportunities for both skilled and unskilled roles. These jobs will be paid for in foreign currency and in line with globally competitive standards. With global businesses looking to do business in Sri Lanka, the incentives for qualified professionals to seek migration will be diminished, as they will be able to obtain comparable salaries here at home, and in foreign currency too.”

“During construction alone, PCC has created 8,000 employment opportunities and is expected to generate 83,000 well-paid jobs as development matures, contributing USD 13.7 billion per annum to Sri Lanka’s GDP when fully-operational.”

“The construction of the USD 7 million Duty-Free shopping mall inside PCC will be the biggest duty-free mall in the region, with a further USD 6.5 million in the pipeline for expansion of operations. The mall is expected to be open to the public by April 2023, with the initial infrastructure expected to be fully completed by Q3 of 2023, which will open up the doors for a further USD 1.5 billion worth of investments into vertical developments. Two international duty-free operators and an international food and beverage partner are already on board and, with the investment plans for entertainment and leisure activities, PCC is expected to be a top destination for city tourism.”

“It’s going to be a remarkable confluence of events. So, all Sri Lankans should realize the effectiveness of PCC as the largest FDI-driven project, and support it. The people can be confident in doing so as the Port City Economic Commission will be entrusted with the administration, regulation and control of all matters connected with businesses and other operations, in and from the area of authority of the Port City,” he pointed out.