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Performance Report – 2010 - Ministry of Finance and Planning

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Housing <strong>and</strong> Urban DevelopmentUrban Development - Urban development isconsidered as the main driver <strong>of</strong> economicgrowth in the present development strategy,particularly due to its high potential forstimulating growth <strong>and</strong> employment insecondary <strong>and</strong> tertiary sectors through itsmultiplier effects. It also stimulates othersectors such as infrastructure development,information, financial services <strong>and</strong>communications. As the economy grows,people tend to concentrate in urban centers.Sri Lanka is on the path to rapid urbanization.Although the majority <strong>of</strong> the population is yetbased in rural areas, this situation is fastchanging. Therefore, effective management<strong>and</strong> structuring <strong>of</strong> our urbanization, <strong>and</strong>ensuring sustainable development <strong>of</strong> ourcities are critical. he significance <strong>of</strong> urb<strong>and</strong>evelopment will increase in the future.Around 35% <strong>of</strong> the present population in SriLanka lives in urban areas. As well as thestrategic location <strong>of</strong> the country, in closeproximity to vital international marinetransportation routes, tourist destinations <strong>and</strong>economic growth centers provide clearopportunities that can be utilized to underpinthe economies <strong>of</strong> our cities.Metro cities <strong>and</strong> regions in the countrySource: Department <strong>of</strong> National Physical <strong>Planning</strong>The government’s vision is to develop wellintegrated <strong>and</strong> connected green urban centresacross the country while establishing highspeed links with metropolitan regions. Theroad network <strong>and</strong> other infrastructurefacilities will be developed connecting urbancentres in metro regions which will reducerural urban migration. Well planned cities,towns <strong>and</strong> villages will be developed in orderto create a high quality living environmentfor our people.At present Sri Lanka’s urban population isconcentrated mainly in the Western Provincebecause <strong>of</strong> the attraction <strong>of</strong> the economicactivities in the city <strong>of</strong> Colombo. Therefore,linear development in outer Colombo areas<strong>and</strong> the suburbs is important tocounterbalance the present urbanizationpattern <strong>and</strong> to prepare the country to meet theneeds <strong>of</strong> the increasing future urbanpopulation while ensuring quality in theirliving st<strong>and</strong>ards.In order to achieve this vision thegovernment has proposed to develop anetwork <strong>of</strong> growth centres including 05metro regions, 09 metro cities, 17 DistrictCapitals, 02 especial purpose cities inMankulam <strong>and</strong> Mannar <strong>and</strong> approximately300 service centres. A metro region willinclude an interconnected network <strong>of</strong> metrocities, district capitals <strong>and</strong> service centres. Inaddition, each region will have its identity,character <strong>and</strong> role.Diversified Cities; Port City – Hambantota- Hambantota will be developed as anindustrial <strong>and</strong> transportation city <strong>and</strong> it is thedistrict capital <strong>of</strong> the region. Therefore, theadministration complex, internationalconvention centers, air port <strong>and</strong> sea port willbe developed to cater to the future dem<strong>and</strong> inthe city.164

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