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Northern Expressway, vital to fast track development - CCI President

Inclusive development of Provinces is timely. The Southern and Katunayake Expressways and the outer Circular Highway under construction will become catalysts to achieve this objective, said Chamber of Construction Industry - Sri Lanka (CCI), President Dr. Surath Wickramasinghe said at the inauguration of Build SL Construction and Regenerating Expo at the BMICH recently.

He said that to accelerate the mega development projects, proposed for the Central, North and East of Sri Lanka, the proposed Northern Expressway has now become a pre-requisite.

Extracts of Dr. Surath Wickramasinghe's speech:

One way of achieving this objective, is to focus development activity off the Northern Expressway with attractive incentives in targeted locations in the Provinces where the provisions of the Strategic Development Act can be used by the Board of Investment to set up mega industries and other commercial activities, in addition to tourism development which is already under way.

There may be critics who would say that the cost of the Northern Expressway will not justify its investment.

On the other hand, the returns from its construction will catalyse the development taking place not only in the Central, North and Eastern Provinces, but also capture the development in the Mahaweli Program which will then trigger its optimal potential that has not been possible to date due to lack of connectivity.

Building the Northern Expressway immediately will prevent escalated costs in another five years or more. If the local consultancy and construction inputs are harnessed the construction of the Expressway could be undertaken in sections to enable multiple contractors to participate in its construction.

The CCI could assist the the Government to 'fast track' this development Program on a PPP Model with the BOI and the RDA.

The urgency is acute as globalisation is rapidly taking place, and all countries are competing to attract foreign investment, especially developing countries in Asia. If Sri Lanka, lags behind, foreign investment will go elsewhere, and the justifiable loans taken by the Government will not bear fruit.

Tourism based activity is a lead sector driving the economy in Sri Lanka. However, it's success will depend on providing world-class, leisure, recreation and entertainment facilities.

Several Asian countries have considered these as a prime need for sustainable tourism development.

In 2013, Singapore had 15.5 million visitors, Malaysia - 26 million and Thailand - 26.7 million, while Sri Lanka had less than 2 million visitors. Their success is that they cater to different types of tourism. Sports tourism which would includes sailing and water sports, golf, polo, horse racing, adventure tourism including hiking, biking, climbing, casino tourism, agri-tourism (horticultural and farm based) and tourism such as audio, educational, heritage, garden, health, ecological, ancestry, rural, bookstore, creative, music and dance, mystical, winter, wild life, commercial and business, wellness, religious, conventions and conference tourism.

The way forward for an island country such as Sri Lanka, is to select at least five provinces, where about 1,000 acres of land could be obtained, to promote integrated resort tourism to meet the Government's tourism promotion agenda through the development of infrastructure to spur economic growth.

Asia's booming resorts use this concept.

To be competitive among other Asian countries and capture a variety of high spending tourists, the BOI, should direct the private sector by using a policy framework and attractive incentives to harness the potential of the connectivity with other Provinces.

Resorts of this type can be implemented, with Government facilitation and private sector funding, and the benefits to Sri Lanka would be enormous as much needed foreign exchange, employment generation in large numbers will be possible.

The bonus would be that Sri Lanka will preserve and protect the environment in the rest of the country including the beaches for present and future generations to enjoy.

For further development of the country at a rapid pace, it will not be feasible for the Government to continue to obtain loans from different sources. CCI has been promoting the setting up of our own Infrastructure Development Fund to support members and to provide funds for infrastructure projects in the country with foreign and local investment. Several countries in Asia such as South Korea, China, Singapore, Malaysia and even India have used this model to fast track development of infrastructure.The CCI and Ceylon Asset Management (CAM) are discussing with the DFCC regarding the modalities of setting up this fund. We have obtained the support of several Ministries allied to the construction industry and from the Central Bank Governor.

The CCI will be the integral stakeholder in the equity structure and its primary promoter.

To fast track this process, it is essential that the Government empower financial institutions which hold capital, such as the EPF, NSB and even the Insurance Corporation, to invest in the equity of this venture.

When this fund is set up, contractors will benefit and will bid for multi-lateral funded projects in Sri Lanka and overseas. We initially hope to raise around US $ 200 million and are confident of increasing the capital within a short period.

Finally, the construction industry which will be a primary beneficiary, will also need to harness it's own human resources.

We face great difficulty in attracting young talent to join the construction industry, despite it being attractive with potential for working not only in Sri Lanka but also in other countries.

We feel that at least at the GCE Ordinary Level stage leading up to the Advanced Level, the syllabus under the technology subject can include theory and practicals in construction work. It will enable students to learn the basic skills of fabricators, carpenters, electricians, plumbers, welders, crane drivers, machine operators to rise up to the level of Master Craftsman in these fields. Today, some of them earn around Rs 100,000 per month and if they are overseas, it will be much more.

The Chamber of Construction Industry was founded in 2001, at a time when the construction industry was recording minus growth as against the construction industry growth rate of between 17-20 % today.

The industry has progressed rapidly, under the Mahinda Chintana policy over the post-2005 period, particularly in road infrastructure, airport and port development in Colombo and Hambantota.

The Colombo City and the Sri Jayewardenapura urban beautification and the facilities provided for the public for recreation and leisure activities has transformed the cities. Over 50 tourists hotels in Sri Lanka have been completed this year. Sri Lanka will soon move into a new league in development.

 

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