Colombo Port City Economic Commission releases promising progress report for first 8 months

• Reveals investor interest growth with its Economic Commission delivers rapid progress in 2023

The Colombo Port City Economic Commission has unveiled its Comprehensive Progress Report covering the period from January to August 2023, showcasing significant strides in the development of the Colombo Port City and the finalisation of legal frameworks for the Colombo Port City Special Economic Zone (SEZ). 

These advancements underscore the project’s standing as a premier investment destination and a burgeoning “Gateway to South Asia.” 

Functioning as the Single Window Investment Facilitator, the Commission has been steadfastly dedicated to simplifying procedures and nurturing a conducive business environment for investors, enterprises and residents alike. 

It highlights that throughout the first eight months of the year, the Commission has achieved pivotal legal milestones, cementing its commitment to constructing a resilient business ecosystem within the Colombo Port City. 

Legal and regulatory milestones

The Asiri Port City Hospital Lease Agreement was signed with Asiri Port City Hospital Ltd., paving the way for the execution of the Indenture of Lease and Investor Agreement, pending specific conditions, to establish a state-of-the-art hospital within the SEZ. The Colombo Port City (Duty-Free Operations) Rules, No. 01 of 2023, were also officially published in the Gazette on 22 May, under reference number 2333/14. 

Meanwhile, a strategic partnership was also forged between the Commission and the Ceylon Chamber of Commerce (CCC)-Institute for the Development of Commercial Law and Practice (ICLP) International ADR Centre (Guarantee) Ltd. (IADRC). This collaboration designates IADRC to provide Alternate Dispute Resolution Services within the jurisdiction of Colombo Port City, accompanied by an agreement with the Ministry of Justice to establish a world-class Arbitration Centre. The Colombo Port City Development Control Regulations (DCR) were also updated and published in the Extraordinary Gazette No. 2334/47 on 2 June.

Most notably, the Parliament of Sri Lanka approved a special incentives program, designed in consultation with the Minister of Investment Promotion, to support businesses categorised as Businesses of Strategic Importance (BSI). This program was published in Extraordinary Gazette No. 2343/60, on 4 August.

Progress with Commercial Development

Highlighting the fast-paced progress within Colombo Port City, a number of achievements with regard to commercial development have been made. A Cabinet Memorandum facilitated duty-free operations and designated duty-free mall operators and retailers as businesses of strategic importance. Government Notification No. 2333/14 established Duty-Free Rules, outlining eligibility criteria for shoppers, permissible purchases, and applicable limits under the Port City Duty-Free regime. Key players, including Port City Duty-Free Ltd. and Duty-Free Retail operator One World Duty-Free (ODF) Ltd., were officially inducted as Authorised Persons.

Alongside this, interior work on the Duty-Free Mall has progressed rapidly, with site handovers to retail operators expected in December 2023. A dedicated executive team from Sri Lanka Customs has also been appointed to oversee import procedures, clearance, and duty-free compliance. Collaborations with the Department of Excise have also been initiated to develop regulations aligned with trading hours and norms to enhance Colombo Port City’s appeal as a tourist destination. Meanwhile, preliminary approval from the Civil Aviation Authority was secured for a check-in facility for departing passengers at the Duty-Free Mall premises itself.

Engineering headway

Making significant progress with regard to infrastructure and engineering, regulations governing Apartment Ownership and Condominium Management were drafted, and have been submitted to the Ministry of Investment Promotion. A number of site inspections have also been carried out, and have addressed infrastructure development issues identified in Phase I, enhancing overall development. These are quickly being addressed to make way for Phase II. 

Technology advancements

As a modern, tech-centric development, committed to sustainability, key progress milestones were achieved in this area as well, during the year. A committee, comprising IT/Technology leaders, Commission officials, and CHEC Port City Colombo representatives, was established to advise on technology-related matters, including smart city development.

A Memorandum of Understanding (MoU) with Mastercard has been inked to foster collaboration in data insights, technology innovation, sustainable growth, and digital accessibility. A Duty-Free verification system is also in development to monitor compliance when Port City Duty-Free operations commence. Meanwhile, the Commission also launched its official website(s) and mobile application, enhancing accessibility and convenience for stakeholders and visitors.

These accomplishments underscore the Commission’s unwavering commitment to fostering economic growth, innovation, and a dynamic business environment within Colombo Port City. With an optimistic future outlook, the Commission eagerly anticipates continued collaboration and progress during the remainder of the year and the upcoming year, building upon the foundation of success established so far in 2023. Investors can thus now confidently explore the opportunities that Colombo Port City offers the world as the Gateway to South Asia.

Read the full Comprehensive Progress Report 2023 here:

https://www.portcitycolombo.gov.lk/news/n-20230914-1