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Institutional Set Up

Establishment of a new Authority is proposed to administer the core area (capital territory ) such as Colombo Development Authority or, Capital Territory Authority, an authority consisting of council of municipalities etc.

The Capital Territory (Core Area) comprises the following local authorities

- Colombo Municipal Council
- Dehiwala-Mt. Lavinia Municipal Council
- Sri Jayawardenepura Kotte Municipal Council
- Kolonnawa Urban Council
- Maharagama Pradeshiya Sabha
- Kotikawatta-Mulleriyawa Pradeshiya Sabha
- Battaramulla Pradeshiya Sabha Unit.
- Boralesgamuwa Pradeshiya Sabha Unit.
- Three Grama Seva Division of Homagama Pradeshiya Sabha
- Five Grama Seva Division of Kaduwela Pradeshiya Sabha Unit.

Fund of the Authority

- Authority will create its own funds through the exercise of its powers, functions and duties. Some possible sources include betterment Tax, and a development tax etc..

- Authority may receive gifts, funds, donations grants and loans by the public and private sector, within or outside Sri Lanka eg. Mayors Fund, Sewerage Fund etc..
- Money may be voted from Central Government, Provincial Council and local authorities.

Conclusion

The Core Area is about 4% of the area of the Colombo Metropolitan Region (CMR). Although the area is small relative to the area of the CMR, the Core Area is economically the most developed and diversed part City of Colombo and Sri Jayawardenapura Kotte, the newly established administrative capital of the country.

Although Colombo has remained as an important commercial centre for several centuries it was during the last twenty years that it began to emerge as an important city in the national and international context. The liberalised economic environment that prevailed during the last twenty years attracted a lot of investment into manufacturing, construction, port related developments and economic and social infrastructure specially with BOI facilities.. In addition, a number of modern hotels also came up in the city to cater to international tourists and visitors coming to Sri Lanka for business purposes. The modernisation of the Colombo port and the expansion of modern facilities at the Katurnayaka International Airport further added to the international importance of the Colombo City. The rapid growth that accompanied these development under economic liberalisation also contributed to a faster urbanisation process in the city and its suburbs.

In the early 1980s, the government decided to relocate the administrative function outside the city inorder to allow Colombo to achieve its potential as a leading commercial centre in the South Asian Region. As an initial step, the government relocated the national parliament in the newly built parliamentary complex in Sri Jayawardenapura Kotte. In 1985, Sri Jayawardenapura Kotte was declared as the administrative capital of the country. This was followed by the relocation of number of ministries and departments, which were located in the City of Colombo, to the newly established administrative capital. However, a number of public institutions still remain within the city limits.

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