LBR LBO Infrastructure Summit 2015 – “Build Infrastructure, Build Growth” – October 2015

Description

INVESTMENTS IN INFRASTRUCTURE DRIVE ECONOMIC GROWTH

Infrastructure projects can generate significant economies of scale and have a wider impact on growth. New and updated infrastructure can generate productivity gains (Fries et al., 2012) and enhance Total Factor Productivity
(TFP) by lowering transaction costs and allowing more efficient use of inputs (Bottini et al., 2012).

Built Environment in urban areas is considered one of the vital drivers of economic development. Built environment facilitates rapid development of urban areas -where the key economic activities tend to take place. The relationship between urbanization and income (GDP per capita) is very strong for many developing countries.

United Nations (UN) estimates that only 18.3 percent of Sri Lanka’s 20 million populations live in urban areas. Possible reasons for low urbanization include historical factors such as development of good social infrastructure around the country, as well as more recent trends such as rising property prices. This makes Sri Lanka one of the least urbanized countries in the world. Empirical research suggests that economic and urbanization goes hand in hand. Interestingly, Sri Lanka reaching the middle-income status without a rapid increase in urban population appears to be an exceptional case compared to trends in other Asian countries, such as China, Malaysia, Vietnam, Indonesia and Thailand.

(It should be noted that some researchers have questioned the rationale behind the classification of urban in
Sri Lanka. It has been argued that the actual urban population could be higher than 18 percent.)

Investing in built environment offers an opportunity to fast-track overall economic growth by encouraging faster urbanization. Sri Lanka can also tap growing global investor appetite for investing in opportunities around
urbanization and emerging global cities.

Built environment, as a general term, describes the Real estate, which plays a vital role in every aspect of an economy, society and environment. Businesses and society can’t function without the services of quality housing, commercial property and many other forms of real estate.

The commercial property sector delivers and manages the infrastructure needed for entrepreneurship to thrive. It is therefore a fundamental source of employment and economic growth, and a major contributor in addressing two
critical challenges of a society: providing livable and functioning cities for a growing urban population and reducing the environmental footprint of the built environment.

Since the end of war in 2009, there have been unprecedented investments in built environment. It has been estimated that the value of the on going projects surpasses few billions of USD. Some of the noteworthy developments, which will transform the economic value of Colombo City and suburbs, are Colombo Port City by China Harbour Engineering Company, Astoria, multiple projects by Fairway and Waterfront by John Keells among many others.

Transport infrastructure in Sri Lanka is considered wholly inadequate. Sri Lanka still has less than 200 KM of high-speed expressways. Reaching the northernmost most point in the island from the capital city is still a day’s travel. It
is estimated that the Colombo city will experience gridlocks in less than a decade, unless immediate improvement to public transport is implemented.

Sri Lanka’s rail network has not seen extension during the post war era: and is unreliable, unsafe and economically unviable.

Less than desired ground transportation is hampering development of provinces and drives the congestions in urban centers.

At this stage of Sri Lankan economic development it is important to evaluate the challenges and opportunities in leveraging investments in infrastructure as a driver of economic development.

LBR LBO Infrastructure Summit 2015 will be dedicated to discuss the challenges and opportunities for investments in infrastructure development in Sri Lanka.

PURPOSE

LBR LBO Infrastructure Summit will:

1) Develop synergy and symbiosis among multiple stakeholders in infrastructure development eco-system: relevant ministries and agencies government of Sri Lanka, investors, multilateral financial institutes, developers, contractors, consultants, technology partners, research institutes and universities, industry chambers and other relevant parties.
2) Provide a platform to discuss and debate opportunities and challenges in infrastructure development in Sri Lanka.
3) Aim to positively influence government policy

TARGET AUDIENCE

Senior level representatives from the following types of organizations are expected to attend the Summit.

1) Government: Relevant agencies and scientific institutions (UDA, RDA, CECB, ICTA, CEB and utility providers, SLPA, Civil Aviation, Military, Coastal Conservation, Finance Ministry, Treasury, Central Bank etc )
2) Universities and research institutions
3) Developers, investors, service providers, architects and urban planners, logistics and transport and logistics companies
4) Multi-lateral financial institutes, development agencies
5) Commercial banks, investment banks, Banks, insurance and other financial services
6) Technology companies
7) Media
8) Various other related service providers

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