Chinese-backed Port City in Sri Lanka to attract $13bn in investment from 2018
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A Chinese-backed real estate project near Sri Lanka's main port is expected to attract $13 billion worth of investment from next year, the developer said on Friday.
The $1.4bn Port City project by China Communication Construction Company (CCCC) started late last year as part of Beijing's ambitious plans to create a modern-day “Silk Road” across Asia.
Liang Thow Ming, chief sales and marketing officer of CHEC Port City Colombo (Pvt) Ltd, the local company that handles the project for CCCC, said a third of the 269-hectare (665-acre) site had been reclaimed from the sea.
“We are hoping to deliver the first site for construction by the end of 2018,” Liang told Reuters in an interview in Colombo.
The reclamation was expected to be completed by the end 2019 and the company anticipated $13bn worth of investment in the form of housing, marinas, health facilities, schools and other developments over the next 30 years, he said.
Examine: White elephants in Sri Lanka
President Maithripala Sirisena's administration restarted Colombo's new waterfront development - the biggest foreign direct investment in the country - in 2016 after suspending the project because of concerns about overpricing and financial terms.
The new land is being built from the sea in the commercial heart of the capital adjacent to the main port and the historic Galle Face Green.
“We are positioning the port city as a hub to the whole of South Asia ... This is a huge market and a region growing very fast,” Liang said.
The government has proposed to ease rules for investors in the project, although no bills have been presented to parliament.
Liang said 50 per cent of the land would be allocated for housing, 30pc for commercial offices and the rest for other activities.
India has objected to some aspects of the development near Colombo port, a major trade route for the South Asian giant.
Sirisena's administration rejected a proposal to give 20 hectares of freehold land to CCCC after India raised concerns. Instead, the Chinese firm was given land only on a 99-year lease.
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Comments (48) Closed
Mar 31, 2017 01:16pm
Great news for Sri Lanka. Maybe Gwadar will attract even more!
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Mar 31, 2017 02:01pm
China is for sure going to lead the world. US has used force, while China is using strategy of combined growth !! My Love for China, from Norway !!
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Mar 31, 2017 02:03pm
Bad news for India, loosing control in region
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Mar 31, 2017 02:29pm
Yes fall deeper into China's trap
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Mar 31, 2017 02:32pm
Is there a market in Srilanka for so much real estate ?? I dont personally think so.It will slowly become a Chinese colony
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Mar 31, 2017 02:38pm
Indians will not like this.
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Mar 31, 2017 02:48pm
13 billion in 30 years nice white washing ideas by the chinese
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Mar 31, 2017 02:50pm
India should be worried.
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Mar 31, 2017 02:57pm
The Habanatota port city has been sold to Chinese due to failure of loan payments
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Mar 31, 2017 03:04pm
Already Sri Lanka has world's emptiest airport built by China... now Colombo, don't know whats going to happen
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Mar 31, 2017 03:08pm
@Khan It is slated to attract atleast 5 trillion dollar after 2050.
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Mar 31, 2017 03:38pm
Pre-planed game to capture sea routes of Asia...
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Mar 31, 2017 03:56pm
@R.Subramanian I have been to sri lanka many times even recently and found out the airport even bussiest since my last trip and ever increasing with so many tourists coming.
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Mar 31, 2017 04:00pm
@R.Subramanian , Yours and lies of other Indians will not change the minds of Sri Lankan's government. The main reason is China's investments in Asia is making Indians more nervous.
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Mar 31, 2017 04:12pm
@Adnan Tourist coming for what ? To see if the airport is empty or not ??
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Mar 31, 2017 04:20pm
@Saif ZulfiQar Already Srilankan are protesting against Govt decision to hand out 15,000 acres of land at Hambantota . And this is mini Dubai palm island like project . $13 billion in 30 years is not a big deal. In SL , India is the biggest foreign investor . In 2015, India invested $ 844 million in SL .
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Mar 31, 2017 04:20pm
@THE BRAVE HEART Yes . Read the last line " Sirisena's administration rejected a proposal to give 20 hectares of freehold land to CCCC after India raised concerns. "
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Mar 31, 2017 04:23pm
Good job. Whole South Asia should prosper.
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Mar 31, 2017 04:26pm
For all trolls here.. In another article on DAWN... this is what was written:
"It was thought that after Maithripala Sirisena defeated Rajapakse in 2015, the new government would distance itself from China and become closer to India. In fact, it is widely believed that RAW, the Indian intelligence agency, helped in putting together the victorious coalition.
But as the new government has discovered, Chinese loans and direct investments have penetrated deep into the economy. Thus, the ties forged by Rajapakse have proved hard to break, and in most cases, existing contracts have had to be honoured. Despite the local unrest caused by the Hambantota deal, most educated people accept the economic necessity of the joint venture."
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Mar 31, 2017 04:38pm
Sri Lanka has every right and is free to be swallowed by China, just as Tibet. It is up to Sri Lankan citizen to decide their future and not by the participants of this forum.
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Mar 31, 2017 04:47pm
@jayanth too much pain to bear for India right?
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Mar 31, 2017 04:49pm
@Khan There is a big difference. Gwadar is based on LOAN with guaranteed return , SL is based on investment. SL project doesn't say $13 billion will come from China. They are developing the land area . Many can invest in it ..Indians, Pakistani or Gulf countries can own ocean front properties. Good for tourism.
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Mar 31, 2017 04:49pm
@Saif ZulfiQar @ ADNAN
In what way all this can be in great favour of Pakistan is hard to understand. Pakistan's CPEC is all together different from SL and it will bring trillions of investment and millions of job opportunities.
CPEC is a great Game Changer Project ! And India will lose importance in the Region. Indians will seek jobs in Pakistan after CPEC.
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Mar 31, 2017 04:56pm
then why was is a flop till now? it now totally depends on tamil nadu's automobile chemical n textile clusters exports..
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Mar 31, 2017 05:18pm
"India has objected to some aspects of the development near Colombo port, a major trade route for the South Asian giant."
Is India happy with any neighbour with hegemonic mindset?
Let neighbours do what they think is best for them!
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Mar 31, 2017 05:31pm
@Khan .Yes Gwadar is a giant mega project, available space for expansion is unlimited,and no need to draw land from sea. China is expanding its presence and trade in all nations of Asia including India,Pakistan,Bangladesh,Nepal,Bhuttan.
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Mar 31, 2017 05:50pm
@Harmony-1©
No need of either holding a brief on behalf of China or lecturing on International Politics.
Because the objection was based on regional security concerns .....and not in the same vein as China is objecting Dalai Lama or Taiwan Business delegation visiting India.
Brother , Control the sentiments and save little for us India !!
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Mar 31, 2017 06:17pm
@apoorva .problem is that what you think is an opinion and not a fact.so take a chill pill.
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Mar 31, 2017 06:21pm
@Devendra G - It’s no "lecturing". Live and let live and endure trade competition! So, don't be touchy!
If "regional security concerns" was used in this article (and it wasn't) it merely means 'a major trade route' concerns in diplomatic speak - as I quoted from the news!
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Mar 31, 2017 06:29pm
China is out to bankrupt another nation with corrupt leadership with unneeded infrastructure and will then take control of their state properties as compensation. This is how China continues to expand its influence. The people of these nations must oppose Chinese funded projects if they are to remain free and independent.
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Mar 31, 2017 06:56pm
Hambantota port and airport. Now this. Sri Lanka's small population of 20 million and a dwindling sea trade makes this project another Chinese acquisition.
Lanka demanded freebies from India to keep Chinese away, who are heavily investing. India is not in a sound position to throw away money to lure others.
Let's see how Lanka benefits from this. Meanwhile India should keep in mind that Lanka has avg per capita income twice that of India. That's difficult when u have 1250 million people against 20 million in Sri Lanka. Lanka earns a lot from tourist. India Pak Bangla should have peaceful and clean environment to promote Tourism.
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Mar 31, 2017 07:06pm
@Saif ZulfiQar Please read about Hambantota airport and seaport. It is a completed project. Don't compare everything with Gwadar. Sri Lanka is trapped in debt.
No doubt they have the highest per capita income in South Asia. But a debt is a debt.
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Mar 31, 2017 07:41pm
@Khan Gawadar is expected to attract$55bn.
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Mar 31, 2017 07:42pm
@THE BRAVE HEART india already lost. A poor nation can not try and look big on borrowed money.
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Mar 31, 2017 07:43pm
@Saif Zulfiqar who cares of what india likes or not. They just need to feed their people and stop oppressing many nations they have occupied.
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Mar 31, 2017 07:48pm
@Adnan : Have you gone to Hambanthoda airport? I did...have not seen a single passenger in the most modern airport....
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Mar 31, 2017 08:13pm
India has no business in Chinese invested Sri Lanka's ports,air ports and port cities as well vis-a-vis on it viability or not.India had warned Sri Lanka in the early stage to be vigilant on China but Lanka ignored it and went ahead.Now the result is before everyone, how those investments are functioning everyone in this world knows and more to come.Its only a matter of time.Now India can do nothing to help Lanka from its Chinese debt trap but yet to protect itself and keep its interests going on can have military options in its hand if China cross the red line which it has not done yet.But that a separate issue which depends on Chinese action on how it takes things forward.
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Mar 31, 2017 08:29pm
@SID
No Sid, I was referring to investment. Not loans. Gwadar special economic zone is what I'm referring to in particular, which is designed to attract FDI.
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Mar 31, 2017 08:37pm
Its predatory chinese actions. SL is on a slippery slope of complete reliance and slavery to china. Their future is being given away.
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Mar 31, 2017 08:55pm
@Adnan I think he is referring new Matala
Rajapaksa airport, not Colombo
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Mar 31, 2017 09:17pm
India has nothing to offer yet, they need to sort poverty first, 350 million still living under bread line.
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Mar 31, 2017 09:18pm
Its all smoke and mirrors. You can't create economic development artificially. Its a very organic activity, a lot of factors that make a successful and viable economic development occur naturally and can't be crested artificially. Besides that China needs to find venues to use its surplus inventory of cement and steel plus its construction force needs jobs.
China is doing domestic economic activity on the sri Lankan dime. Which is a very Chinese way of doing things.
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Apr 01, 2017 02:20am
@Saif Zulfiqar :Why should anyone be riddled with envy at anyone else's progress?
Your posts regularly suggest that only your "brothers" should prosper and all other should perish!
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Apr 01, 2017 03:59am
This will complete the encirclement of India.
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Apr 01, 2017 04:01am
I wonder if Gawadar will ever get such fancy buildings or is it simply too far away from Raiwind and Bilawal House to even be considered?
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Apr 01, 2017 07:01am
first they built ghost ports, now ghost cities!!!!!
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Apr 01, 2017 08:51am
@ZK " CPEC is a great Game Changer Project ! And India will lose importance in the Region. Indians will seek jobs in Pakistan after CPEC."
Probably you are overestimating CPEC. India already has two economic corridors. One is East coast economic corridor and other is Mumbai Bangalore economic corridor. Third one Delhi Mumbai economic corridor with $90 billion investment is under construction.
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Apr 01, 2017 09:11am
@Harmony-1©
If India is hegemonic design in it's neighborhood then China is no difference.
Ask Japan, Korea, Vietnam, Mangolia,Taiwan, Cambodia, Laos, Philippines, Thailand, Myanmar, Malaysia, Indonesia, Brunei, Bhutan, India, all these countries share the border with China.
And Pakistan did not have border with China....!!!!
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