By: Staff Writer
March 12, Colombo (LNW):Port City Colombo has marked a significant milestone today with the ground-breaking ceremony for its premier business park, the Business Centre.
CHEC Port City Colombo Ltd., said the event transcends a simple building construction – it signifies the dawn of a new era for Sri Lanka’s economic landscape.
Strategically located within close proximity to Colombo’s existing central business district, the Business Centre offers a unique commercial ecosystem for diverse businesses.
For example, the Business Centre will feature distinct zones – an IT Park and a Commercial District – all with a focus on sustainability through modern workspaces like garden offices.
CHEC Port City Colombo Ltd., said this ground-breaking is an important catalyst for Sri Lanka’s growth and for the entire region.
“This project, the largest public-private partnership in Sri Lankan history to date, underscores the government’s commitment to becoming a regional leader in technology and commerce. Join Sri Lanka towards breaking new ground – for investment, collaboration, and a brighter future,” official sources said.
The parliament of Sri Lanka recently approved a comprehensive incentives programme proposed by the Commission in consultation with the Minister of Investment Promotion, in relation to the guidelines for granting exemptions or incentives to businesses designated as Businesses of Strategic Importance (BSI).
Established under the Colombo Port City Economic Commission Act, No. 11 of 2021 (Act), the Commission aims to attract global investors, promote economic stability, and position Sri Lanka as a leader in service exports.
In accordance with the Act, the Commission identified businesses important for the success of the Colombo Port City to be designated as a BSI and recommended exemptions or incentives from the scheduled statutes of the Act.
‘To offer a competitive value proposition to potential investors, the Commission engaged with top international advisory firms such as PricewaterhouseCoopers, Ernst & Young, KPMG, and Boston Consulting Group for international benchmarking of selected factors.
These collaborations resulted in a proposed framework that establishes Colombo Port City as a globally competitive SEZ with transparent regulations and good governance principles, along with proposed sector incentives.
‘Businesses of Strategic Importance in Colombo Port City are classified into two groups: “Primary Businesses of Strategic Importance” and “Secondary Businesses of Strategic Importance”. Primary businesses involve the development of physical infrastructure of USD 100 million per land plot or USD 25 million in the Marina or Social Infrastructure.
Secondary businesses encompass sectors such as international trade, shipping logistics, banking and financial services, information technology, and tourism, among others.
‘For “Primary Businesses of Strategic Importance,” two optional incentive schemes are available. Scheme A offers exemptions or incentives from relevant enactments for 25 years, along with 50% off the prevalent corporate tax rate for 10 years after the initial 25-year period.
Scheme B provides an enhanced capital allowance of 300% on depreciable assets used within Colombo Port City, with deductions allowed for up to 40 years.
