new investments for the special economic zone start

The Sri Lankan government wants to launch the “blue economy” concept. The project was presented in April and seeks to attract foreign investors other than China. According to analysts, the proposal is unlikely to succeed. The opposition had criticized the bill to establish a fully independent Economic Commission.

Colombo () – The Port City Special Economic Zone (SPZ) plans to allocate 4 billion dollars to create a megaproject capable of generating new investment from various sources.

Sources from the Ministry of Investment Promotion revealed to that “the government is preparing to launch the concept of the ‘blue economy’, sustainably using ocean resources to drive economic growth, increase employment opportunities and improve livelihoods, while preserving the well-being of the ecosystem oceanic”.

According to an official from the China Harbor Engineering Company, the project will include the construction of international shipping vessels, floating marine laboratories and production plants.

The Sri Lanka Central Bank Monetary Commission (CBSL) and the Ministry of Finance have approved offshore licenses – regulated by the Colombo Port City Economic Commission (CPCEC) – for four banks. The CPCEC has granted the investors six new lease contracts for a period of 99 years worth about 200 million dollars, while the investors have provided a collective investment commitment of 600 million dollars. It is estimated that this will generate between 12 and 13 billion dollars per year of added value through the provision of services.

A senior official from the port city explained to that “the special economic zone wants to promote export services to attract foreign direct investment.” Meanwhile, the infrastructure of the first Duty-Free shopping center in the region has been completed.

Discussions are currently underway with investors from India, Southeast Asia, the Middle East, China and Japan for the port city project.

In April this year, the Special Economic Zone multi-service project was presented to foreign investors for the first time by the Embassy of Sri Lanka in the UK.

According to Colombo Port City officials, “Starting in 2021, the Port of Colombo has been busy attracting investors: first for the golf course and then for the off-road vehicle racing center, a first in South Asia. The Indian subcontinent is the largest target market and offers significant opportunities for Indian companies. Japanese investors are also willing to invest in the port city of Colombo.”

However, according to analysts, “the project is controversial, as it is seen as an economic effort at the service of China’s strategic objectives and the expansion of its influence in the region, traditionally considered India’s strategic backyard.” Analysts doubt that other countries will invest in this project, except for Beijing.

In April last year, when the Colombo Port City Economic Commission Bill was introduced in Parliament, opposition parties rejected the proposal. They pointed out the danger of setting up “an all-powerful commission answerable to no one.” If this bill is passed, we will have one law in the country and another in the city of Puerto.” The members of the Commission are not accountable to Parliament and parliamentary committees, the Auditor General or other constitutionally recognized authorities.