China establishes rival to World Bank

The China-backed Asian Infrastructure Investment Bank (AIIB), viewed by some as a rival to the World Bank and Asian Development Bank, was formally established on Friday, according to a statement issued by Beijing.

The United States and Japan - the world's largest and third-largest economies, respectively - have notably declined to join the bank, which is expected to begin operations early next year, though others such as Australia, Germany and Britain will take part.

The bank's establishment came after 17 funding members of the AIIB, which account for just over 50pc of its share capital, ratified an agreement on the bank, state television quoted Finance Minister Lou Jiwei as saying.

"The AIIB is legally established as the Articles of Agreement take effect today," said Lou said.

"The establishment of the AIIB marks a milestone in the reform of global economic governance system."

It will be operational once its board of directors and executive council have met for the first time at an opening ceremony scheduled for January 16-18, the ministry of finance said.

Beijing will be by far the largest AIIB shareholder at about 30pc, according to the legal framework signed by 50 founding member countries in late June.

The AIIB has been feted by Beijing as a way of financing regional development, and is seen as a potential rival to US-based institutions such as the World Bank.

The bank will initially focus on financing projects in power, transportation, and urban infrastructure in Asia, the television quoted the bank's president-elect, Jin Liqun, as saying.

With authorised capital of $100bn, it expects to offer its first batch of project loans by mid 2016, according to the official Xinhua news agency.

First proposed by President Xi Jinping less than two years ago, the bank has become one of China's biggest foreign policy successes.

Despite the opposition of Washington, major US allies such as Australia, Britain, Germany, Italy, the Philippines and South Korea have joined.

http://www.telegraph.co.uk

Lanka's city property prices soar

The skylines of the world's emerging cities are being transformed. Colombo is no exception. As construction booms in the emerging markets, cities in these regions will soon be home to record-breaking property developments and some of the most ground-breaking real estate the world has seen.

Shangri-La Colombo
As the year draws to a close, online property portal Lamudi looks back at the key developments in real estate in the emerging markets in 2015.

One Galle Face, Sri Lanka

This $608 million integrated lifestyle development from Shangri-La Colombo includes high-end residential, retail and office space, as well as a prestigious five-star hotel.

The development sets a new standard for luxury living in Colombo and seeks to tap into the growing number of tourist arrivals to the country.

Prices of apartments in the Residences at One Galle Face start at $405 per square meter, ensuring the development targets investors, expatriates and Sri Lanka's growing upper income bracket.

The project will also offer seven levels of shopping, dining and entertainment, plus 60,000 square meters of prime office space. Slated for completion by 2018.

Jeddah Tower, Saudi ArabiaThis mega project in Obhur, just north of Jeddah, is set to take real estate to new heights. Measuring 1km into the sky, the tower will overtake Dubai's Burj Khalifa as the world's tallest building once construction ends in 2020. In late November, the Saudi government announced that Jeddah Economic Company and Saudi Arabia's Alinma Investment had signed a $2.2 billion deal to build Jeddah Economic City, which includes the 200-floor skyscraper.

International Financial Centre Jakarta Tower Two

Construction of the International Financial Centre (IFC) Jakarta Tower Two entered its final phase in September. Located in the heart of Jakarta's financial district, the development is billed as a state-of-the-art eco-office tower. The existing 10-storey Tower Two is being redeveloped to offer 49 storeys of prime Grade A office space. The project, from Singapore developer Keppel Land, is slated for completion next year. With features such as rainwater recycling and a range of energy- and water-efficient fittings, the building will be the first in the city to receive the renowned Green Mark Gold PLUS Award from Singapore's Building and Construction Authority.Myanmar Center Tower, MyanmarStrategically located in New Yangon, the Myanmar Centre Tower will offer four blocks of world-class office space totaling 180,000 square meters. With flexible floor plans and customizable spaces, the development is suitable for all businesses seeking to make their mark on one of Southeast Asia's fastest growing economies. The project is part of the broader HAGL Myanmar Centre, which also includes a retail mall, a five-star hotel and luxury apartments, The Lakes Suites, which started pre-sales in June this year. HAGL Myanmar managing director Cao Duy Thinh told the media that the development would set a new standard for Yangon as the city's first integrated mixed-use project built to international standards.

Proyecto Akaroa, Colombia

Located in a residential neighborhood in the northeast of Bogotà city, the highly sought-after Proyecto Akaroa housing project consists of 192 apartments of one, two and three bedrooms.

There are 16 apartments per floor, each offering the latest in interior design, and common areas such as a pool, gym, sauna and jacuzzi.The development is unique in the city for its rooftop outdoor areas, including a mini golf course, barbecue space and playground.

Launched in 2013, Lamudi is a global property portal focusing exclusively on emerging markets. The fast-growing platform is currently available in 34 countries in Asia, the Middle East, Africa and Latin America, with more than 800,000 real estate listings across its global network. wwwdailynews.lk

VIAL hails lowering import duty of electric cars from 50% to 5%

The Vehicle Importers Association of Lanka (VIAL) President Indika Sampath Merenchige said that the decision to lower the import duty of electric cars from 50% to 5% by President Maithripala Sirisena was a step taken in the right direction.

Electricity cars save energy and are also environmental friendly and hence they should be encouraged by the government over other vehicles. "We are happy that the government has understood this advantage and we thank them for this decision that would be advantageous to the vehicle import industry.

He said, however, that the prices of electric cars would increase slightly because of the revised valuation system. "Therefore an electric car would cost at least Rs. 2.8 million,"

During a cabinet meeting on Wednesday , President Maithripala Sirisena had re adjusted this tax increase.

Meanwhile Cabinet Co Spokesperson Minister Gayantha Karunathilake said the government had decided not to increase import tax on electric cars because of numerous requests by various individuals. "As a responsible government which considers people's opinions, we decided to withdraw the proposal," he said. The Minister also said the Cabinet had decided not to impose the increased import tax introduced in the Budget 2016 for all cars for which Letters of Credit (L/C's) had been opened before November 20.
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Lanka Sathosa to turn around in six months

The loss making Lanka Sathosa would be turned around in six months, said new Chairman Dr Rohantha Atukorale.

He said that the institution is running in the excess of Rs. 30 million monthly loss and this is due to bad planning and positioning.

Dr Atukorale said that within the next three months all outlets will receive a face lift with the basic infrastructure corrected in lighting, freezer facilities and retail staff so that it can ensure that total basket of goods for a housewife can be bought at a Lanka Sathosa outlet.”

The Chairman said that they are also looking at introducing 185 new outlets by the end of the year to make it a 500 outlet institution.

Dr Atukorale said under the previous government there had been a buying spree of consumer goods which were not appealing to the customers of Lanka Sathosa. “In addition the institution also suffered billions of losses due to low quality rice imports sans quality control. “We are still paying for these financial sins, ” he said.

Asked if the Lanka Sathosa was over staffed the chairmkan said it was mainely at the head office. “However we can overcome this by assigning them to the new outlets that would be opened this year, ” he said.

Dr Atukorale who was earlier the Chairman of Sri Lanka Tourism Promotions Bureau said that once these dues are settled they would be in a better financial position. “No rocket science is needed to turn the institution around what you need is to develop the grocery business,” he said.

Sathosa has commanding store equity of 3.4 among the mass market consumer at a trial to retention rate of 67% that no other brand in the market can elucidate.

He said that they would also launch loyalty cards, special bank offers, gift vouchers and several such promotions to woo increase customers to patronize Lanka Sathosa. “We have appointed professionals to bring in new management thinking into the organization and expand the outlets so that we can meet the changing consumer requirements of the Sri Lankan consumer.

Whilst we are increasing the retail outlets we will introduce an internal quality laboratory so that we offer the best,” said Minister of Industry and commerce Rishad Bathuideen. “I want Sathosa to be not only a “price setter in the Sri Lankan retail industry but also the best supermarket chain that offers a value addition to a Sri Lankan household,” the Minister said.

He also assured that a three month stock cover on essential were available at the institution.

wwwdailynews.lk

Tourism Earnings Over Rs. 2.2 Billion

The occupancy and earnings in Sri Lanka’s tourism sector are increasing and from around US$ 500,000 earnings in foreign exchange in 2010, it has today risen to over US$ 2.2 billion.

According to veterans in the industry, today it has climbed to the No. 3 spot, preceded only by the Apparel industry and Worker Remittances. Unfortunately there are negative aspects where Sri Lankan woman employed in the Middle East are concerned, but the Sri Lanka tourism attracts this much needed forex directly at the point of consumption in the country, with a very high value added component.

Tourism as an industry came into the limelight in early 1960s. Thereafter, all governments places emphasis on the tourism industry. However, till recently, there had been no proper steady development and follow up. According to the veterans in the industry, a stable government is of utmost importance for the development of the industry and it is in existence today.

Tourism is the world’s largest and fastest growing industry, with the year 2014 recording over 1 billion tourists, generating US$ 1.2 trillion revenue and accounting for almost 10% of the global GDP.

Also one in 11 jobs worldwide is tourism related. Despite certain setbacks and disasters, tourism has continued to grow at about 4-5% year on year, with Asia growing the fastest at around 6%.

Sri Lanka, of course, could not maintain such rates on a regular basis due to the almost three-decade long conflict which ended a few years ago. It should also be stressed that despite the major setback, Sri Lanka tourism managed to keep the arrival figures at or over 450,000, displaying the resilience and determination of the country’s tourism industry professionals.

For centuries, the Emerald Isle, Ceylon or Sri Lanka, has been well known for its hospitality, and the island nation is also reputed for its natural wonders both in land and sea. It’s the only country in the world were the largest animal and mammals exist. Within hours of watching Elephants in the wilds, it takes only one or two hours to see blue whales, the largest mammals on earth in the ocean.

According to the veterans, the real development that has actually taken place in the tourism industry has been spearheaded by the private sector. (RS)
www.thesundayleader.lk

FCID Commences Probe On Krrish Deal

By Mandana Ismail Abeywickrema

The police Financial Crimes Investigations Department (FCID) has commenced an investigation into the controversial Krrish Transworks Colombo (Pvt) Limited project that was initiated during the former Mahinda Rajapaksa regime. Several VVIPs of the former regime are hence expected to be interrogated by the FCID in the next few weeks.

The US$ 650 million Krrish square mixed development project in Colombo was aimed at constructing four high-rise buildings containing a luxury hotel, apartments, malls and office space covering a land space of 4.3-acres on a 99-year lease from the Urban Development Authority (UDA).

However, the Krrish project was marred with controversy and allegations made of secret payoffs to several prominent figures of the former regime including a few VVIPs in order to expedite the relevant approvals. The issue of the alleged payoff resulted in a controversy over the final installment the Krrish Group was due to pay the UDA to complete the land lease transaction. The project has been stalled since March 2013.

It was reported at the time that Krrish had deposited the amount equivalent to the final installment for the Krrish Transworks Colombo (Pvt) Limited project in a private bank in Singapore as a payoff to a VVIP. The final installment that was due to the UDA by Krrish amounted to around Rs. 450 million.

The names of several powerful members of the former regime were highlighted in the controversial Krrish project while drafting of the agreement was undertaken by a legal firm that was owned by the son of a VVIP of the former regime.

The Sunday Leader learns that the relevant files have gone missing from the respective legal firm.

Krrish has so far made a payment of Rs 4.4 billion while the total due to the UDA is Rs 4.995 billion. The final payment is yet be made to close the land lease deal.

Be that as it may, officials from India’s Krrish Group visited the country early this year to discuss the possibility of resuming the stalled project under the new government.

Accordingly, a discussion was held between the Krrish officials and the Chairman of the Board of Investment (BoI), Upul Jayasuriya. The BoI during the discussion had requested Krrish to pay the dues and continue with the project. The Krrish Group however is yet to respond positively to the request.

www.thesundayleader.lk

Port City will add green area nine times as big as Galle Face to the city

New Environmental Impact Assessment outlines details

The Colombo Port City will add a new green area of approximately 45 ha, nine times the size of the Galle Face Green which is five ha. in extent, Chin Harbour Engineering Co. Ltd., the developer said last week.

CHEC said this green area which will be accessible to the general public will comprise "a hierarchy of public and private landscape typologies offering habitat provision, urban cooling and helping Colombo to proactively prepare for climate change."

The developer explained that the project’s park strategy is to provide different types of parks and places for recreations for people living in Port city and visitors. The Central Park works as a community park with a wide range of recreation facilities, such as areas for sport, an informal lawn area, play area, ornamental garden, woodland and naturalistic area for relaxation and study.

"There will be close proximity to water via jetties as well as raised views over the park from adjacent bridges and the organically formed boardwalks that transverse the water for the public to enjoy."

It assured that the Project Company will take required action to maintain good visual appearance of the undeveloped land portion till such time developments commence upon the land plots being sold/leased to third party developers.

The new Environmental Impact Assessment (EIA) plan presented by the Government for the Colombo Port City shows an increased public area, the developer revealed last week.

"The area allocated for public usage according their originally negotiated position of September 2014 was 63ha but now it has been increased to 96ha, which has moved the public land area from 27% of the total land extent to 36%,"a CHEC news release said.

"The public areas will follow an open space concept consisting of a network of public parks and open water, large scale and small?scale streets, public squares and small plazas. Open space provision is based on land use, demographics and maximum walking distances to various facilities creating a hierarchy of open spaces that has the benefits of enhancing the physical character of an area; improving physical and social inclusion, including accessibility; and providing connected routes between places for walking and cycling, and safer routes to schools."

According to the Supplementary Environmental Impact Assessment (SEIA) Report of the Colombo Port City (CPC) Development Project, the Presidential Secretariat will command the most prominent views of the CPC. The front of the Secretariat building will have an uninterrupted view of the Grand Ceremonial Boulevard of Colombo Port City, the developer said.

The sketches of the Master Plan also indicate that the view of the sea from the Galle Face Green will not be obstructed. The plan indicates that the Presidential Secretariat building will be enhanced with an extended public green space (North of the lotus sculpture) and uninterrupted views of the Marina and water to the South. The Presidential Secretariat (and its immediate vicinity) will therefore become an aesthetic center?piece of the Colombo Business District (CBD) and a focal point where the old city meets the new seamlessly, they said.

Colombo Port City’s Master Plan is made up of five distinctive urban areas, namely the Marina District, Port City CBD, International District, Park Living District, and the Living Island. Each of these urban areas is unique, yet complementary and integral part of the overall Master Plan, and all have public spaces incorporated into their design.The local parks provided in the linear parks and other green areas should offer a wide range of facilities for play and relaxation, while pocket parks are provided on private lands, the release explained.

The Marina is a leisure destination for both office workers in CBD and residents from the whole of Colombo. Restaurants, entertainment and shopping are located in small?scale low? rise buildings on the pier, it explained.

The breakwater for the reclamation and the marina, which is visible from Galle Face, has been designed keeping in mind safety and aesthetics. With the offshore island breakwater approach, a pool of relative calm water of around 300m length will be formed between the breakwater and the beach area of the landfill, which would facilitate swimming and water sports activities currently not possible in the Colombo area, the release said.

Port City CBD is a natural extension of the already-existing CBD in the old city neighbouring the site. The park and the layout with pavilions and many pedestrian connections help integrate the old city and the new Port City. In order to preserve the aesthetic appeal, the master plan indicates that taller buildings will be located along the Boulevards and decrease in height towards the water areas of the Port City. Therefore, the report, says no development will block significant views to the waterfront and Presidential Secretariat, it explained.

International District will include the public places much needed by neighbouring office and university areas, such as small parks and squares. Along the edge towards the existing wall a buffer park will be created. As office area, this district will become a start?up incubator.

The Park Living area is a residential area concentrated around "The Central Park" of 22 ha and the northern part of a Linear Park. The housing volumes may stretch out into the parks to enhance the feeling of living in a green open space, and not merely beside one.

The Living Island District is an urban residential area with close proximity to the sea, beach, canal and central park. Although with a quiet character, the main boulevard offers close by shops, restaurants and services for the residents.

The park strategy is to provide different types of parks and places for recreations for people living in Port city and visitors. The Central Park works as a community park with a wide range of recreation facilities, such as areas for sport, an informal lawn area, play area, ornamental garden, woodland and naturalistic area for relaxation and study. There will be close proximity to water via jetties as well as raised views over the park from adjacent bridges and the organically formed boardwalks that transverse the water for the public to enjoy.

The Project Company will take required action to maintain good visual appearance of the undeveloped land portion till such time developments commence upon the land plots being sold/leased to third party developers.

Upon completion of the reclamation and ground improvement of the bare land, all roads (including main ring roads), landscaping, the Central Park and other green areas and utilities required for the initial stage of marketing will be completed.

There will be Development Control Regulations established collaboratively with the UDA for all investors who intend to undertake developments within CPC. This would include guidelines on maintenance of undeveloped?land pending the commencement of development. Also, pending construction, the undeveloped areas of Port City may be maintained as green belts with landscaping, trees, green walls, hoarding or temporary structures and facilities appropriately in order to maintain visual aesthetic, public appeal and adaptability.
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