PM justifies Govt. plans for Port City

• Kicking off 2-day debate in P’ment, Rajapaksa says legal framework needed to achieve $ 15 b anticipated investment 
• Informs House Govt. agrees to all amendments to Bill proposed by Supreme Court
• Assures majority on Economic Comm. will be Sri Lankans, including Chairman; 75% of jobs in CPC to be preserved for Lankans, with some exceptions 

By Chandani Kirinde

Prime Minister Mahinda Rajapaksa yesterday in Parliament justified the Government’s plans and support for the Port City project, saying the country needs investments, proper legal framework and incentives to realise this goal. 

Kicking off the two-day debate on the Colombo Port City (CPC) Economic Commission Bill in Parliament, the Premier said the project is expected to attract over $ 15 billion worth of investments in the next five years and that it was essential to bring in a legal framework to help achieve this goal. 

“Today there is much competition among countries to attract investors and to make our country attractive we have to offer incentives, facilities, and services. We should also have a single window investment facilitation process to attract foreign investment.”  

The Bill was moved by the Prime Minister in his capacity as the Minister of Finance. The vote on the Bill is scheduled for this evening.

Rajapaksa said the Government has agreed to all the changes proposed to the CPC Economic Commission Bill by the Supreme Court and will move the necessary amendments during the third reading of the Bill.

He said the amendments will ensure that the majority on the seven-member Colombo Port City (CPC) Economic Commission, which will administer the area within the CPC, are Sri Lankans – including its Chairman.

He said another amendment would be moved to ensure that at least 75% of the job opportunities created in the Port City are reserved for Sri Lankans, but noted that the Commission would be given the opportunity to relax this condition in certain cases where Sri Lankans do not have the required special skills.

“The construction of the new city will create about 200,000 jobs and livelihood opportunities in the first five years. Experts estimate that the next five years will see the creation of about 83,000 new permanent jobs,” Rajapaksa said.

He said the CPC Economic Commission Bill was needed as the CPC and its services should be managed by a competent authority so that those who invest in this new city can carry out their business activities without any hindrance.

“There should be a high level of ease of doing business. There should be tax holidays and other incentives. The macroeconomic indicators in that country should be at a good level while infrastructure facilities including ports, airports, roads, electricity, and communications facilities should be of international standard. Health and education facilities should be of a high standard. There should be a beautiful urban environment,” the Prime Minister said.

Rajapaksa added that, regrettably, the ease of doing business in the country suffered a major setback during the previous Government.

“In 2014, Sri Lanka was ranked 85th in the World Bank›s Ease of Doing Business International rankings. But by 2019, Sri Lanka had fallen to 99th place. Therefore, our country has been lagging behind in attracting international investment and we should overcome that position as soon as possible.”

He also said one of the main ways to attract businesses and investors is by increasing the business facilities in the Port City. 

“Our country is in a recession and the economy has contracted by 3.6% in 2020. As a result, the GDP of our country further decreased from $ 82 billion to $ 80 billion. However, our Government has been able to maintain a satisfactory standard of living,” the Premier told Parliament.