Cities are the primary drivers of economic development, therefore, Sri Lanka’s cities have a decisive role to play in driving the economy forward by catalysing high value-added economic activities, as the country strives to achieve upper middle-income country status.
According the latest Word Cities report, 80 per cent of global GDP is created by cities, despite their accounting for less than 60 per cent of the world’s population (UN-Habitat, 2016).
The Government of Sri Lanka recognizes the role of urban economy in shaping the future of the country. In this respect, Vision 2025 and Public Investment Programme (PIP) 2017-2020 lays out the urban policy priority actions: to promote western region as economic hub of the southern part of the Indian subcontinent, and to promote strategic city development to secondary urban spaces as provincial economic hubs.
It is also interesting to see how competitive a city is, taking into account current and potential roles of governments, businesses and the private sector in the economic development of the city and urban settlements, best use of human capital, and labour force participation, and existing skills and the job market etc. within demarcated territory.