By Sri Lanka will bring an amendment to its Port City Economic Commission to dollarize its it’s financial environment.
The port city is yet to emerge as a globally competitive specialized economic zone.
The amendments to the current act will be undertaken “in order to enable the maximization the feasibility of the Port City as a globally competitive specialized economic zone”. said a Cabinet statement .
The changes are meant to eliminate existing obstructions for “commencement of business operations as shown by the investors”. How ever these obstructions have not been named by the government.
Tax Loophole
Several businesses including software firms which were approved to operated from the Port City are running at designated locations, pending the construction of buildings. The tax payments of these ventures were questioned by Dr Harsha Silva in parliament. Many companies have been making use of this tax loophole.
The Cabinet of Ministers has approved the proposal by the President in his capacity as Minister of Investment Promotion to instruct the Legal Draftsman to prepare a bill for amendment of the Act.
Separate Legal and Administrative Framework
The Port City is governed by a separate legal and administrative framework, which some argue could lead to a “state within a state” scenario, where the area operates with significant autonomy from the national government.
Foreign Influence: The project’s heavy investment and involvement by Chinese companies, particularly China Harbour Engineering Company, have raised concerns about potential undue influence by China over Sri Lankan affairs.
