Colombo Port City Economic Commission releases semi-annual progress report for FY2022

PCC Centre Park South landscape

The Colombo Port City Economic Commission, the Single Window Investment Facilitator authorised to assist investors, businesses and residents in conducting their activities seamlessly and efficiently in Port City Colombo, recently released its semi-annual progress report for FY 2022 from July to December 2022. 

The Port City Colombo Special Economic Zone (SEZ) is designed to be a prestigious, strategically located city in the heart of South Asia, with sustainable high-quality public spaces and infrastructure, providing top-quality commercial, entertainment, medical, education and lifestyle. International destinations such as DIFC, DMCC, Labuan, Singapore and Mauritius were studied for their regulatory frameworks, fiscal incentives and operational efficiency to identify the most competitive processes and policies for Port City Colombo. The benchmarking study was done by global consultants such as Boston Consulting Group, PwC, KPMG, EY, Pinsent Masons, Zico Law, JLL, etc., for the SEZ’s thrust sectors, supported by market feedback on both fiscal and non-fiscal parameters.

Overall project update
The Port City Colombo SEZ Regulations for the registration, licensing, authorisation and other approvals of Authorised Persons, were published by extraordinary gazette in September 2022, bearing number 2299/46. The SEZ’s Regulations for the registration and licensing of Authorised Person Fees were also gazetted in September 2022, bearing number 2299/47. The registration of offshore company regulations were gazetted in the month of November 2022, bearing number 2306/54. 

Agreements have been signed between the commission and Registrar General of Companies and Controller General of Immigration and Emigration in order to streamline services offered to Authorised Persons.
Technical Certificates of completion for 64 out of the 74 plots of the Port City Colombo SEZ have been received 
by the commission. 

Sectoral progress highlights
Banking – The Finance Minister issued licences under the Colombo Port City Economic Commission Act to four banks during the first half of 2022. The commission has since received requests from three more banks during 2022. Additionally, 10 Financial and Banking Regulations were also drafted under Sections 44 and Sections 45 of Colombo Port City Economic Commission Act No. 11 of 2021 and are awaiting review with the Monetary Board of Sri Lanka.

Security – The Sri Lanka Police opened a Post on-site for visitor protection, with water access control and lifeguard services being handed to the Sri Lanka Navy. CCTV networks were also installed in public areas.
Social infrastructure – In addition to an internationally-reputed hospital and school, the commission has identified the need for a world-class university within Port City Colombo and modified the Master Plan accordingly.
Commercial infrastructure – With the retail mall infrastructure complete, the commencement of the interior work has begun. The mall will showcase premium merchandise, with an array of cuisine options and entertainment and is set to commence operations 
by 2Q of 2023.

Immigration and visa arrangements – In collaboration with the Immigration and Emigration Department, the commission has introduced three new visa categories for Port City Colombo. These three visa categories are - the Investor visa for 10 years, Employment visa for up to five years and Resident visa for five years. Port City Colombo visas allow supplementary benefits, such as visas for the spouse, kids and other support staff members, which can be obtained under the primary visa applicant. The visa fee is US $ 200 per year for each applicant. Visas are renewable as required and applicable only to 
foreign investors.

Master plan implementation – A planning committee consisting of key stakeholders was created to expedite the approval of building plans submitted under the Development Control Regulations (DCRs) for each plot of the Port City Colombo SEZ. The DCRs provide a clear framework for the development of buildings, land use, green spaces, utility networks and sustainability measures, among other factors.

Preliminary designs for the Marina Development and Villa Project have been submitted by two investors, with several more plots in the final stages of discussion for lease.