October 26, Colombo (LNW): The Colombo Port City Special Economic Zone (SEZ) is rapidly gaining attention, with over 100 companies considering operations within its boundaries, as reported by its promoters.
The Colombo Port City Economic Commission (CPCEC) has established a public registry listing Authorised Persons (APs), which includes both primary and secondary investors.
These APs feature renowned global companies from countries such as India, the UAE, Singapore, the UK, Norway, and the US, highlighting the SEZ’s international allure and its potential as a regional service hub.
Colombo Port City is positioning itself as a leading business center in South Asia, providing a contemporary legal framework and a conducive environment for investors.
This SEZ is emerging as a competitive alternative to established financial centers like Dubai and Singapore, invigorating Sri Lanka’s economic landscape.
Its strategic location and modern infrastructure offer significant growth opportunities, enabling Sri Lanka to enhance its regional presence.
Historically, international and Sri Lankan IT and BPO firms have preferred locations like Dubai and Singapore due to their favorable conditions, including the ability to pay employees in USD, tax incentives, political stability, and strong economies.
Recognizing these advantages, Colombo Port City has created a regulatory framework with strategic incentives that parallel these benefits. It presents a compelling option for global businesses aiming to expand in South Asia, while also serving as a viable solution for local enterprises seeking to extend their reach.
Recently implemented banking regulations within Colombo Port City further bolster investor confidence by protecting capital movements, creating a secure business environment. These measures are designed to attract foreign direct investments (FDI), benefiting the local economy and opening up new growth pathways.
Unlike other zones in Sri Lanka under the Board of Investment (BOI), the policies of the Colombo Port City SEZ are uniquely crafted to connect benefits directly to foreign earnings, export services, and new business initiatives.
This ensures that only companies committed to genuine investments can access the SEZ’s advantages, as opposed to merely relocating for tax incentives.
The competitive tax incentives and modern regulatory framework are designed to attract high-value FDI, encourage innovation, and support sustainable economic growth. By emphasizing authentic investments, Colombo Port City aligns its development with Sri Lanka’s broader objectives of innovation, entrepreneurship, and job creation.
To uphold this focus on genuine investment, the CPCEC has established clear criteria within the SEZ’s legal framework. Secondary investors must meet specific standards, such as generating over $50 million in global revenue or creating at least 100 jobs within five years of operation.
They must also demonstrate how their business will positively impact Sri Lanka’s economic and social development through innovation, research, or establishing an international financial center.
Investors are required to submit comprehensive business plans to qualify for incentives, with annual compliance reviews conducted by the CPCEC. If these standards are not met, the CPCEC reserves the right to deny licenses or renewals.
This structured approach ensures that the development of Colombo Port City remains aligned with Sri Lanka’s economic goals, fostering a vibrant business ecosystem.
