Legal framework of Colombo Port City to Parliament in January

The government plans to present the proposed legal framework of Colombo Port City to Parliament in January, next year, with the tourism, foreign and commercial activities of the first phase of the project are scheduled to commence within the year.

“I expect to present to Parliament a new legal framework conducive to promote commercial services and investment in this Special Economic Zone in January, after the Budget Debate,” Prime Minister and Finance Minister Mahinda Rajapaksa announced in Parliament on Tuesday.

The government is expected to present an attractive tax concession for business to be established in the zone. At the moment, the government grants concessions for investments under the reactivated Strategic Development Projects Act.

“It is expected to provide concessions on the required taxes and specific goods trade, banking and foreign exchange, with the objective of converting the Port City Economic Zone as one of the hubs for investment promotions in the country,” he noted.

He highlighted that the proposed business and investor-friendly legal framework and proposed advanced infrastructure, would turn the zone a prime choice for investors and business community.

Moving forward, the Prime Ministers assured that the government has expedited the development of Colombo Port City Special Economic Zone as an attractive business hub, following several delays. 

The proposed Port City Economic Zone is set to become the country’s first specialised zone for service exports. It aims to become a financial hub in particular, targeting multinational as well as high-net-worth individuals.

“This Economic Zone provides for extensive employment opportunities for Sri Lankans and earning even in foreign currencies,” the Prime Minister said.

The land reclamations and infrastructure development of the project is funded by CHEC Port City, a unit of China Communications Construction Company Limited, at an estimated cost of US $ 1.4 billion.