29 August 2024 02:20 am Views - 4183
Port City Colombo has officially registered over 100 companies as Authorised Persons (APs) within its Special Economic Zone (SEZ) as of August 24, China Harbour Engineering Company (CHEC), the primary project company of the zone, announced yesterday.
The companies, representing diverse sectors such as IT, finance, shipping, logistics, tourism, healthcare, real estate and professional services, are projected to occupy between 30,000 and 50,000 square metres of office space within Port City Colombo.
“Among these APs, 22 companies have been designated as Businesses of Strategic Importance (BSIs). The Colombo Port City Economic Commission (CPCEC) is currently reviewing the BSI status of the other APs and several more companies are in the process of registering as APs, reflecting increased investor confidence in Port City Colombo,” CHEC stated in a media statement.
Major banks among the registered companies, including Sampath Bank, Commercial Bank of Ceylon and Hatton National Bank, have applied to establish offshore banking branches within the economic zone. The banks are to operate under the newly gazetted offshore banking regulations issued on July 26, 2024.
Moreover, a business centre in the form of an IT and commercial park in the financial district of the Port City is set to be launched in November 2024. “Port City Colombo offers export-oriented businesses the advantage of direct connectivity to key markets in the Middle East, Europe and the Asia-Pacific regions. These achievements align with Port City Colombo’s vision to attract high-value foreign direct investments (FDIs), whilst the diverse range of companies reflects the SEZ’s focus on service-oriented sectors,” the company further stated.
The SEZ’s regulatory environment, governed by the CPCEC, offers several incentives to investors, including tax exemptions for over 25 years, transactions in designated foreign currencies and 100 percent capital and profit repatriation.
As a multi-billion-dollar FDI-funded public-private partnership, the zone operates under a special legal framework, exempt from the jurisdiction of the Colombo Municipal Council.
This framework allows the zone to function with its own subset of commercial law in relation to commercial contracts and transactions.
To operate within Port City Colombo, companies are required to first qualify as APs and then be designated as BSIs, to benefit from the exemptions and incentives provided under the CPCEC Act.