Port City Commission gets more powers to grant incentives, tax breaks

The Cabinet nod has been granted this week to issue orders granting incentives and exemptions for investments in the Colombo Port City (CPC) Special Economic Zone and introducing a separate mechanism under Foreign Exchange Act No. 12 of 2017, in accordance with the provisions of Colombo Port City Economic Commission Act No. 11 of 2021.

Finance Minister Basil Rajapaksa sought the approval of the Cabinet of Ministers on Monday to publish the relevant orders, in accordance with the provisions of Section 7 (1) of Foreign Exchange Act No 12 of 2017 and to submit these orders to Parliament for approval.   According to the Government Information Department, the Colombo Port City Economic Commission has requested to issue the necessary regulations and provisions,  in accordance with the provisions of the Foreign Exchange Act, introducing a separate mechanism to facilitate investment within the CPC Special Economic Zone, which comes under the purview of the commission. The Monetary Board of the Central Bank has already approved the request.

Colombo Port City Economic Commission Act No. 11 of 2021 has empowered the Colombo Port City Economic Commission to determine and grant exemptions or incentives from the laws in force in the country, including the Foreign Exchange Act. As the Commission is yet to exercise its power, the above orders issued under Foreign Exchange Act No. 12 of 2017 are aimed at providing incentives to attract investments to CPC.