Cabinet approves amendments to Port City Economic Commission Act

Wednesday, 31 July 2024 00:34 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers at its meeting on Monday approved directing the Legal Draftsman to prepare a Bill for amending the Port City Economic Commission Act No. 11 of 2021.

This decision aims to incorporate relevant amendments to maximise the feasibility and global competitiveness of the Port City as a specialised economic zone.

The necessity to amend the Port City Economic Commission Act has been identified to remove existing obstructions that hinder the commencement of business operations, as highlighted by prospective investors. These amendments are intended to streamline processes and enhance the business environment, making the Port City more attractive for international investments.

“Some of the new amendments will be included following the Economic Transformation Bill which was passed recently,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the post-Cabinet meeting media briefing yesterday.

He claimed, Sri Lanka has failed to attract substantial amounts of foreign direct investment (FDIs) over the past decades whilst other countries in the region; India, Singapore, Vietnam and Thailand were able to attract around $ 100 - $ 200 billion a year.

On 16 January 2023, the Cabinet approved to create a more favourable environment for investment and export promotion, to establish a new institution consolidating the Board of Investment (BOI) and the Export Development Board (EDB). “This amalgamation will pave the way for a more cohesive and efficient approach to economic development in the country,” he added.

Gunawardena said the move is expected to not only strengthen Sri Lanka’s standing in the global economic landscape but also serve as a catalyst for increased FDIs and enhance export capabilities.

“By addressing the concerns of investors and eliminating barriers to business operations, the Government aims to position the Port City as a leading economic hub, fostering economic growth and attracting FDIs,” he added.

The amendments to the Act are expected to play a crucial role in the development and success of the Port City, ensuring it meets international standards and remains competitive in the global market.

The proposal to this effect presented by President Ranil Wickremesinghe in his capacity as the Investment Promotion Minister was approved by the Cabinet of Ministers.