The government is looking to revitalize the construction sector and make it a catalyst for future growth. The upcoming interim budget will settle all government dues to the construction industry.
Four major cities Hambantota, Trincomalee, Jaffna, and Colombo shall be developed as major cities along with 9 economic corridors. All major cities will have port and airport access. Over Rs 150 billion a year shall be allocated for water distribution projects.
Impetus shall be given to select local contractors for projects that are locally financed. Foreign financed projects shall be incentivized to subcontract with local players in the industry.
There are plans to reclaim land from the ocean in between the Galle Face Hotel and the Wellawatta canal. The Port City and surrounding areas sewerage and parking infrastructure is planned to be developed underground.
Secretary Urban Development Authority Dr. Priyath Wickrema said “we need competent contractors. We are confident that the plan developed according to the National Policy framework has numerous opportunities for the construction industry.”
Dr. Wickrema categorized the plans as a win-win situation for developers, contractors, and the government while creating a strong foundation for the development of the country. These views were expressed at the Taj Samudra to the Ceylon Institute of Builders on 25 August.
The Beira Lake region shall continue with its development plans.
The Colombo Fort area shall be developed under a heritage city concept in line with the Dutch Hospital and Racecourse redevelopment projects. The Grand Oriental Hotel, the Colombo Hilton, and Grand Hyatt shall be partly divested by the government.
The Pettah area will be redeveloped as a multi-modal transport hub. The Judicial Square region shall be redeveloped. Green space shall be made available to the public in the Fort region. 11 new car parks shall be developed for Colombo City. A new administrative building shall be developed in Battaramulla with 25 floors. The government has planned housing projects for low to middle-income groups.Four housing projects shall be completed with grants from the Chinese government.
Director BOI Ranjan Sibera said, “the government decided that the construction industry is a key industry for the government to reach its targets.” Construction players were called on to take on international projects.
The BOI aims to make construction contribute as much as 15 percent to GDP. The Strategic Development Act shall be utilized to streamline approval processes. The UDA has been instructed to release lands efficiently.
The Colombo International Financial Centre with five mega towers within the Colombo Port City has already received a planned US$ 1 billion investment. Cabinet and BOI approval have been granted with the gazette being published last month.
Prefabrication and modern building methods were to be incentivized. Large scale projects (above US$ 50 million) could go through the BOI to seek exemptions on taxation. China and Chinese investment through Hong Kong remain the largest source of FDI into the country.
