Analysts: Port City Colombo bears no benefit to country

Colombo/Sri Lanka – The newly built land reclamation Port City Colombo is becoming a major city. It includes an offshore international financial center, residential areas and facilities for luxury yachts.

The new city is expected to house about 80,000 people and will provide tax relief to those who invest and do business there.

The Port City project was officially unveiled in 2014, a year after China started the implementation of the Belt and Road Initiative.

Out of the 178 hectares where buildings can be constructed, 116 hectares have been given to the project company on a 99-year lease basis. The remaining 62 hectares are owned by the government.

Port City investors have access to long-term tax breaks. Having such large tax breaks does not improve Sri Lanka’s overall income.

Agith Gihan, a political analyst, said the country does not generate profit from sales tax and tourism in the Port City, emphasizing that Sri Lanka is not reaping benefits from the Project.

The U.S. has warned that a loose business environment could be a haven for money launderers. In 2017, the port was handed over to foreign companies due to the difficulty in repaying loans, raising the risk of losing the Port City of Colombo to foreign companies in the long run.

Gihan also claimed that the Chinese seizure of Sri Lanka’s domestic resources exacerbated the economic deficiency and made the country stuck in debt.

“The poor people of the country have not received any relief from this Port City. This will bring relief to the Chinese. They are the ones who get the benefits. Today, Chinese people are often seen in these areas. It is doubtful that not only Colombo but the whole country will become a Chinese colony in 10 years,” said Bernard pernando, a trade union leader.