Gazetted regulations clear path for banks to operate at Port City Colombo

The banks will soon begin operations at Port City Colombo, now that the offshore banking regulations have been gazetted, paving the way for the area to become a major financial hub.
On July 26, the Offshore Banking and Offshore Banking -- Prudent Management and Confidence were gazetted for commercial operations within the area of authority of the Special Economic Zone. 
The offshore banking regulations underscore Port City Colombo’s readiness for operationalised business activity and emergence as a regional offshore financial centre in the South Asian region, Port City Colombo said.
“Being a core set of regulations that will form the underlying foundation for Port City Colombo’s progressive business-friendly environment, this milestone will further strengthen global investor confidence and promote the increase of foreign direct investment inflows into the Sri Lankan economy,” CHEC Port City Colombo Managing Director Xiong Hongfeng said.
The regulations will enable commercial entities to engage in permitted offshore banking activities. They include transactions in any designated foreign currency with any other offshore unit or non-resident, acceptance of savings, time and demand deposits from any authorised person or a non-resident in any designated foreign currency, borrow in any sum in a designated foreign currency from any non-resident and any other transactions as authorised by the Colombo Port Economic Commission, with the concurrence of the Central Bank of 
Sri Lanka. 

Eligible entities to obtain licence to engage in offshore banking business:

1.) A company incorporated in Sri Lanka and licensed under the Banking Act as a licensed commercial bank. 
2.) A company incorporated outside Sri Lanka and registered in Sri Lanka as an offshore company under the provisions of Companies Act, No. 07 of 2007, whilst being licensed under the Banking Act.
3.) A company incorporated outside Sri Lanka and registered in Sri Lanka as an offshore company and licensed to engage in banking business under any other law in another country but not licensed under the Banking Act in Sri Lanka.