We are already nearing the end of the first quarter of 2017. With it in mind, we look at the projects that the government is involved with, as well as how these affect the Sri Lankan maritime industry. It is safe to say that key players in the global logistics arena will also affect the way Sri Lanka and its neighbouring India and other countries in maritime cargo routes will interact.
The Colombo Port City has been a much debated and discussed project with politics and concerning changing government. The project is funded by China who had offered Sri Lanka capital during the war efforts, and thereafter heavily invested in post-war infrastructure projects such as the Hambantota Port, and now the Colombo Port City.
Many environmentalists have also raised concerns due to the dredging of sea sand from the bottom of the ocean, and how it affect0073 marine life. However, upon conducting several environment investigations (namely these reports included the likes of EIA (Environmental Impact Assessments) and SEIA (Supplementary EIA). Once investigations have been carried out, there are presented to an expert committee at the Coast Conservation Department, which has in fact given the all clear to proceed with the project. However, the Port City is being rebranded as the Colombo International Financial City (CIFC). The CIFC project (formerly Colombo Port City) holds one of the biggest portions of the pie that makes up the future of the Sri Lankan maritime industry as well as the growth of the economy. The basis that the project will succeed has been based on case studies of other countries that have carried out reclaimed land projects such as Dubai and Doha.
With China looking to export its excess capital, one of the most notable projects in the global maritime industry would be “One Belt One Road,” the 21st century maritime silk route strategy. Aligning the future of the Sri Lankan maritime industry with the Maritime Silk Road (MSR) is may be increasingly profitable to the Sri Lankan economy with Chinese investments.
In addition, with the Trump administration looking to Indian interests, this could prove favourable to Sri Lanka in the long run. Furthermore, the Sri Lankan government has made necessary adjustments to the 2017 Budget, with reductions of expenditure however, high taxes may cause a dip in consumption, as well as high interests and corporate tax too may cause ripples in the investments arena. With these in mind, we recommend keeping a keen eye on the horizon for the future of the Sri Lankan maritime industry.