The Committee on Public Finance (COPF) has approved new regulations under the Colombo Port City Economic Commission Act No. 11 of 2021, according to an official statement from Parliament.
The regulations, issued via Gazette No. 2475/28 dated February 13, 2026, introduce changes to duty-free retail operations within the Colombo Port City, including easing restrictions on purchases by Sri Lankan citizens.
The move is aimed at increasing local participation in retail activity within the zone, particularly as foreign tourist arrivals to the Port City remain low—accounting for around 1.5% of total visitors. Authorities believe the policy shift will help improve the commercial viability of duty-free outlets.
COPF was also informed that the Port City Economic Commission is closely monitoring the potential misuse of duty-free goods entering the local market through unauthorised channels.
In addition, the Committee approved amendments to regulations issued under several gazette notifications dated January 16, 2026, relating to the Termination of Employment of Workmen Act (TEWA).
The revisions follow a petition filed before the Court of Appeal, prompting the government to adjust an earlier policy decision. Under the new framework, only Sections 2, 11, and 12 of the Act will be exempted for certain strategically important businesses, while the remaining provisions will continue to apply.
Officials further noted that steps are being taken to extend similar exemptions to other categories of strategically important enterprises, identified as Secondary Businesses of Strategic Importance (Secondary BSI).