Project Company welcomes Cabinet approval to establish SEZ at Port City – Lanka Business Online

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The approval
was granted at the cabinet meeting held on the 04th January 2021 to
establish the Colombo Port City Special Economic Zone which will be an
International business and services hub with specialized infrastructure
facilities. Port City investor company, CHEC Port City Colombo (Pvt) Ltd.
welcomes the Government’s move and expects this initiative will bring more
Foreign Direct Investments to Sri Lanka.

“The Colombo
Port City Economic Commission Bill” would form the framework law that would be
applicable within the Port City and the Cabinet of Ministers approved the
proposal made by H.E. President Gotabaya Rajapaksa to take necessary steps to
publish the relevant bill on the government gazette and submit it to the parliament
shortly. The Colombo Port City Special Economic Zone
is expected to create a conducive and
competitive environment in attracting foreign direct
investment (FDI). 

Urban Development via SEZs is not unique
to Sri Lanka and there are many successful SEZs in the world. An SEZ will offer
relief from various forms of taxation on businesses and individuals who
qualify. They also offer superior infrastructure; have streamlined
administrative processes in place that results in ease of doing business. SEZ’s
have been a useful tool for developing nations to upgrade infrastructure, human
capital and institutional frameworks and test out policies and their impact
before they are selectively implemented outside the SEZ in the rest of the
country.

The
establishment of a well-positioned SEZ will benefit the nation by; upgrading
resources and capabilities where policy makers can overcome bottlenecks in
resource mobility and attenuate the costs of larger scale implementation or upgrading
across the entire country. A successful SEZ sends an important signal that the
country is open for business.

The
facilitative environment expected to be created through the “Colombo Port City
Economic Commission Bill” is supported by the first world infrastructure made
available in the 269 Ha of reclaimed Land at Port City and is expected to result
in the inflow of both financial and human capital and promote local and foreign
entrepreneurs, create employment opportunities and enable talent retention. It
is expected that the SEZ will attract multinational enterprises to set up
headquarters or regional offices in Port City and in turn they will bring in
financial recourses, technology, technical and managerial know-how.

We
hope the establishment of a SEZ will accelerate Sri Lanka’s economic growth. A
realized master plan for the Port City provides 5.7 million square meters of
built up area valued at $15 billion that will be home to multinational
enterprises, corporate headquarters, transient workers, and residents. It will
be the catalyst for a modern services hub that will help Sri Lanka’s
transformation into a services-led growth model and elevate the economy to
high-income status.






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