COPF checkmate Port City Economic Commission

• The Committee expressed strong dissatisfaction during the inquiry, as no official stepped forward to take responsibility

By Yohan Perera and Ajith Siriwardana  

In the course of examining the legality of Duty-Free Rules issued by the Port City Commission for Duty-Free Malls during a prior Committee meeting, COPF had sought the opinion of the Attorney General. As a result, it has been revealed that the Commission lacks the authority to establish such a rule.  

It has been highlighted by the Attorney General that this policy inconsistency could lead to market distortion.  

The officials from the Port City Commission, who were present at the meeting have acknowledged the error and assured that the rules would be revoked by the end of this week. However, when the Committee sought clarification on the individual responsible for these erroneous decisions, there has been a noticeable absence of accountability. The Committee expressed strong dissatisfaction during the inquiry, as no official stepped forward to take responsibility.  

In light of the evident lack of clarity and accountability and the issues brought to the forefront, the Committee was of the opinion that a thorough reconsideration of the mentioned Regulation was warranted. Consequently, the Committee directed the Ministry of Investment Promotion to identify the responsible party and outline measures to prevent similar errors in the future. This action was deemed essential to safeguard against potential discouragement of future investments.  

Furthermore, the Committee on Public Finance considered Gazette Extraordinary No. 2334/39, as per Section 24 of the Board of Investment (BOI) of Sri Lanka Law, No. 4 of 1978. This gazette outlines a proposal by the BOI to amend regulations, permitting non-BOI or Section 16 BOI companies to attain Section 17 approval with exemptions for specific sectors and criteria. Such amendments would expedite Foreign Direct Investments and facilitate collaborations between foreign companies and existing BOI entities, enabling them to benefit from customs duty exemptions.