Clear land and condo laws needed to attract foreign investment, CB Governor says
Ambiguous laws relating to ownership of land and condominium property rights in Sri Lanka can thwart foreign investment flowing into the country. Central Bank Governor Arjuna Mahendran said that land and condominium ownership in Sri Lanka is an issue that has to be addressed as legislation in this regard in recent times has regrettably become slightly muddied and unclear and this needs urgent repair for which the new government has made plans . He was speaking at the International Mayors forum held in Colombo last week under the theme of “Future Cities” as part of the 150 anniversary celebrations of the Colombo Municipal Council.
He said for a mega city to thrive the people who come here whether foreigners or locals should know whether a clear legal frame work in terms of ownership of property and property rights exist. He said social and cultural aspects also have to be looked at while embarking on building smart cities. Referring to the late Singaporean Prime Minister Lee Kwan Yew, he said the former did not approve of a plan to build a mega city to accommodate 6 million people but wanted the plan limited to accommodate 4-5 million people. “There are limitations on how a local population can exert on growth in unfettered numbers.” The Governor said that for mega cities to thrive there has to be a hinterlands as well like in most developed cities such as Hong Kong, China, Dubai and Malaysia for providing port and other facilities.
He said there are several advantages by linking up with India and the rest of the subcontinent. “During the last 50 years the Port of Colombo was the jewel in our crown. We have built with assistance from the Indian Development Bank an 18 metre depth container terminal run by a Chinese company that allows large container vessels to berth in Colombo. Most of that cargo goes in to India,” he said. Deputy Minister of Public Enterprise Development Eran Wickramaratne said that Colombo possesses a natural harbour which was known to Indians, Greeks, Persians, Romans, Arabs and Chinese traders for over 2000 years. Sri Lanka is also the largest exporter of cinnamon in the world, he added.
He said during the British period they built houses and other civilian structures in the Colombo city giving rise to the present city of Colombo.
In 1865 the British established a Municipal Council as a means of training the local population in self-governance and “we are the inheritors of the oldest local government in the world”. Following independence in 1948 a new culture began to take root. Although Colombo lost its capital city status in the 1980 it is still the main hub of business centre in the country. The ultimate goal of the city is to make life convenient for its people and Colombo has to draw a coherent plan to build a modern city. “How are we to do this? We have to involve the public and the private sector and the people. Sri Lanka has to learn from the success stories of others,” he said.
Mr. Wickramaratne said the population explosion by 2045 will put pressure on the existing infrastructure of cities. “Cities should not only become smart cities but green cities as well and will require political will and leadership which this government is ready to provide.” Public transportation is entirely outdated and needs to be overhauled. Much has to be done in the public transport sector. The previous government built ports and airports but failed to improve the quality of life for the ordinary people. Meanwhile the Colombo Municipal Council (CMC) is commemorating its historic 150th anniversary with the participation of local dignitaries, urban council heads and international mayors representing many urban councils in South East Asia and South Asia. A panel discussion on future cities was conducted by Dr. Vijay Jaganathan, the moderator.
Parliamentary Speaker Karu Jayasuriya, who was the chief guest, said the world urban population is growing at a phenomenal rate and the pace of urbanization is accelerating. Today half of the world population lives in cities and according to UN estimates by 2030, 70 per cent of the people will live in global cities.”Living in cities will be our future when people from the countryside move into cities in search of jobs and prosperity. However unplanned cities have contributed to the environmental degradation and human sufferings,” he said.The Speaker said that the government is taking steps to change the electoral system and a new voting system will come into effect at the next local government elections to be held in March or April 2016.
Referring to future cities, smart cities and global cities, he said the topic is being discussed in many capitols of the world to improve the quality of life of people. Senior Advisor to the Minister of Sustainable Development and Wildlife Professor Sarath Kotagama, who spoke on the topic of “Ecological Approach on Future Cities”, said the Paris declaration last week on global climate change mandated that global temperature should not exceed 1.5 degrees . He said whatever cities “we are” going to build will have to conform with what was agreed at the Paris summit. He said the Sri Lanka Tourism Board in 2003 gave the first climate change song to the world sung by Alston Koch. Mayor of Colombo A.J.M. Muzammil also spoke.