August 01, Colombo (LNW): Port City Colombo has officially gazetted two key regulations, Offshore Banking and Offshore Banking – Prudent Management and Confidence, on 26th July 2024 (Gazette Notifications 2394/66 and 2394/67), marking a significant step in its development as a regional offshore financial centre in South Asia.
These regulations facilitate commercial operations within the Colombo Port City Special Economic Zone, aiming to attract global investors by offering a business-friendly environment with robust safeguards.
Investors can transact in foreign currencies and enjoy benefits like higher trading freedom, capital repatriation, and tax exemptions, similar to those in Singapore and Dubai.
Xiong Hongfeng, Managing Director of CHEC Port City Colombo, highlighted that this regulatory framework will boost investor confidence and increase Foreign Direct Investment (FDI) inflows into Sri Lanka.
Eligible entities for offshore banking licenses include:
- Sri Lankan companies licenced under the Banking Act.
- Offshore companies registered in Sri Lanka and licensed under the Banking Act.
- Offshore companies registered in Sri Lanka and licensed to engage in banking under foreign laws, but not under the Sri Lankan Banking Act.
The regulations allow permitted offshore banking activities, such as foreign currency transactions, accepting deposits from non-residents, borrowing in foreign currency, and other authorised transactions with the Central Bank’s concurrence.
Port City Colombo aims to become a major regional offshore economy and commercial hub, enhancing Sri Lanka’s economic stature.
