Sri Lanka’s “Colombo Port City Project” clears all hurdles

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The Sri Lankan Supreme Court has cleared the “Colombo Port City Project” with minor modifications.

About Colombo Port City Project:

• Firstly, Colombo Port City Project is a large-scale integrated city being developed near Colombo, Sri Lanka.
• Secondly, the city is being developed as a Special Economic Zone(SEZ). It aims to attract billions of dollars for trade, banking and offshore services similar to what is available in Dubai and Singapore,
• Thirdly, China Communication Construction is developing the project through its subsidiary China Harbor Engineering Construction (CHEC).
• Fourthly, the Port City will be administered by a commission with unprecedented powers to fast track investment approvals.
• Fifthly, Benefits: The transactions within Port City will be denominated in foreign currency. Further, all salaries earned by any worker of the Port City will be tax-exempt.
• Sixthly, Significance of the Project: It is the single biggest private sector development in Sri Lanka. It is also expected to transform Colombo into a commerce, tourism and cultural hub.

Criticism of the Project: The port city has been criticised for several reasons:

• Environmentalists claim the port city contains many environmental hazards. They believe that the adverse environmental impact of the project would be far greater than the economic benefits.
• Maritime sector veterans pointed out the dangers Sri Lanka may face due to giving outright ownership of land to China. That too especially in a high-security zone. This may impact Sri Lanka’s sovereignty.

Source: The Hindu