Turning Sri Lanka's Urban Vision into Policy and Action - UN HABITAT

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Turning Sri Lanka’s Urban Vision into Policy and ActionMapsMap 1: Economic mountains, Sri Lanka 8Map 2: Economic mountains, Asia 8Map 3: Building density, Colombo District and Colombo Metropolitan Region, 2002 9Map 4: Urban settlements, 2002 20Map 5: Sri Lanka Urban Vision, 2030 20Map 6: Building density, Kandy District and Southern Province, 2002 33Map 7: Housing and urban development and transport infrastructure vulnerable to flooding, 2011 36FiguresFigure 1: Manufacturing employment and productivity, by district, 2008–09 12Figure 2: Colombo Metropolitan Region location quotient analysis, by industry, 2002–09 14Figure 3: Industry location quotient, by district, 2004–10 14Figure 4: Competitiveness index – selected urban centers, 2010 16TablesTable E.1: Turning Sri Lanka’s Urban Vision into Policy and Action – priority actions 5Table 1: Growth drivers – selected provinces, 2007–09 13Table 2: Actual (2001 and 2009) and planned population (2030) of main urban centers 23Table 3: Capital expenditure, share of total expenditure (2010 – budgeted) –selected Urban Local Authorities 29Table 4: Local revenues by source, 2008 ($ thousands) 31Table 5: Own-source revenue (2010 – budgeted), selected Urban Local Authorities ($ thousands) 31Table 6: Turning Sri Lanka’s Urban Vision into Policy and Action – policy directions and priority actions 60BoxesBox 1: Agrarian land market restrictions and the rural–urban transformation 9Box 2: The economic base of urban centers outside the Western Province –Kandy, Trincomalee, Galle, and Jaffna 17Box 3: Underserved settlements in Sri Lanka’s urban areas 26Box 4: The fiscal transfer system 32Box 5: Vulnerability of Sri Lanka’s cities to disasters 35Box 6: Low-income housing – institutional setting and main government programs 38Box 7: Past initiatives: lagging regions’ relocation incentives 42Box 8: The government’s urban regeneration programs – urban centers outside the Western Province 43Box 9: Costa Rica’s ecotourism model 44Box 10: The Lunawa Project 45Box 11: Green growth programs in cities 49Box 12: Public–private partnership units – a review of international experience 51Box 13: Bus rapid transit – a success story in Curitiba, Brazil 53Box 14: Metropolitan governance models – a review of international experience 56Box 15: Market-based land disposal and conversion options 58iv
Turning Sri Lanka’s Urban Vision into Policy and ActionForewordSri Lanka is urbanizing as it continues its transition from a rural economy to one based on servicesand manufacturing. By acting now, Sri Lanka has the potential to achieve its Urban Vision, as definedin the government’s development policy framework – the Mahinda Chintana – to develop as a systemof competitive, environmentally sustainable, and well-linked cities and to provide every family withaffordable and adequate urban shelter by 2020. This policy note provides an initial assessment of SriLanka’s urban characteristics, outlining the challenges ahead and broad policy directions for turningthe Urban Vision into action.Rather than provide a comprehensive assessment of the urban sector, the objective of the policy note isto stimulate and facilitate evidence-based policy dialogue on Sri Lanka’s urban agenda and to identifypriority areas where sector knowledge needs to be expanded through new data and studies. Thepolicy note draws largely on readily available information and the findings of extensive consultationscarried out in October 2011 and February 2012. It is thus a “living document” – to be revised andenriched as the dialogue evolves and sector knowledge expands.The policy note has six main sections. Section I briefly outlines Sri Lanka’s urban characteristicstoday. Section II discusses the main economic drivers of Sri Lanka’s cities. Section III presents themain themes of Sri Lanka’s Urban Vision (which includes the System of Competitive Cities Visionand the Adequate and Affordable Urban Shelter for All Vision) and discusses its economic rationaleand viability given the urban characteristics and economic drivers of the country’s cities. SectionIV outlines the main challenges for achieving the Urban Vision, based on the results of a diagnosticassessment carried out as an input to the policy note. Section V discusses recent governmentinitiatives for implementing the Urban Vision, and how they have helped tackle the challenges. AndSection VI offers broad policy directions and priority actions to achieve the Urban Vision.We hope that this policy note will foster timely dialogue on Sri Lanka’s urban transition and supportthe government as it translates its Urban Vision into reality.Diarietou GayeCountry Director,Sri Lanka and MaldivesThe World BankLaxman PereraCountry Program ManagerUN-HABITATv
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