New Dubai-Made in China! Port City, Colombo
The Chinese are building a new Dubai, but the attractive new projects have drawbacks, and it also has a dark side.
The Chinese are building a new Dubai, but the attractive new projects have drawbacks. It is sait it also has a dark side.
In Colombo, the capital of Sri Lanka, a new district of a port city is emerging. Port City will look a lot like Dubai in South Asia. The district contains vast sand, but also includes cutting edge skyscrapers that house international financial centres, housing estates, and a marina. Port City is evoking comparisons with Dubai, Monaco, and Hong Kong
"This land gives Sri Lanka a chance to build a city by world standards, which will be able to match Dubai or Singapore," said Saliya Vikramasuri, a member of the Colombo Economic Commission.
But critics are asking how much it will cost Sri Lanka?
First, the China Harbor Engineering Company (CHEC) had to invest $ 1.4 billion to even start. The construction will be done on 665 hectares of land. In return, the company got a lease on 43% of its real estate for 99 years.
What is the state of things?
Today, Colombo's Port City's skyline is dominated by huge cranes monitored by Chinese engineers. Workers move concrete slabs and excavators fill trucks. Simply, insane amounts of sand have to be moved.
The river that flows through the newly constructed landscape has already been dug. Now, small boats and yachts can sail on it. Authorities estimate that the first project will be finished in about 25 years.
The new city is expected to be home to about 80,000 people. The city is offering tax cuts to those who are doing business or investing in it. All transactions in Special Economic Zones, including salaries, are conducted in US dollars.
The Port City Project was revealed while China's President Xi Jinping visited Colombo in 2014. It was a year after the start of the Belt and Road Initiative. This project was an ambitious plan to build road, rail and maritime infrastructure projects across Asia and Europe. Its goal was to promote trade.
“One potential downside around Port City is the fact that there is the possibility of tax breaks of up to 40 years for some investors. This great tax relief does not improve Sri Lanka's total income," said the economist who is dealing with this case.
Many people are worried
The United States also warns that the city could become a new paradise for offshore businesses. Mohammed Ali Sabri, Sri Lanka's Minister of Justice, said that this is not possible.
"There is no chance that this will happen because criminal law is respected here," Al Sabri said.
China's growing influence in Sri Lanka is also a concern to India India, which considers Sri Lanka an ally.
Port City‘s goal is to attract multinationals and investors that are already based in India. This might put their investment in India in jeopardy.
