Government mulls Panchikawatte development project

The government is going ahead with the Panchikawatte Triangle Hi-Tec City Urban Regeneration Project which had been delayed for around two decades. Secretary to the Ministry of Urban Development and Sacred Area Development Dr. P. Ramanujam told The Sunday Times FT that a top Japanese Bank and a Saudi investor have already expressed willingness to invest in this $900 million mega development project.

He added that they have formed a public –private company to implement the Panchikawatte project covering a land area of 34 acres in extent. Its inner- core of about 14 acres is highly congested with obsolete development. He pointed out that the city’s land is under- utilised, and that the only way forward is through regeneration of these “brown areas”. A thrust in this direction will be the launch of the Panchikawatte Triangle Project, he said. Ramanujam noted that the main aim of this initiative is to transform the Colombo city to a business centre by relocating all government buildings and public sector institutions in Battaramulla and suburban areas.

The re-development of Panchikawatte Triangle involves the relocation of 2040 slums and shanties to a site across Panchikawatte Road by building alternative accommodation for them. Ramanujam said that all these slums and shanty dwellers will be provided with shelter facilities in a modern housing complex at a site situated at Pradeepa Mawatha, Panchikawatte. However he said that the investment for relocation housing has no direct returns and hence requires funds from a multilateral lending agency. President of the Chamber of Construction Industry Surath Wickramasinghe disclosed that the cost of relocation will be in the region of $40 million and the government will provide $10 million as a loan for resettlement of the displaced.

He said that according to the development plan a high rise building complex will be built to house all vehicles and motor car spare parts shops in the East Zone of the Panchikawatte Triangle. Two hotels including one luxury hotel will also be built. The plan promotes high-rise development within the context of a garden city. The Panchikawatte duty free hyper market project will be another major component of this project and it proposes the Panchikawatte area to be redesigned into one huge duty free hyper market to attract duty free tourism and duty free shopping. According to Wickramasinghe, if the concept of hyper market becomes a reality in the near future, it will definitely give a boost to the Sri Lankan tourist industry as well as the capital market.