Sri Lankan government approves more secondary businesses at Port City
Daily FT: The Cabinet of Ministers has approved designating several companies as Secondary Businesses of Strategic Importance under the Colombo Port City Economic Commission Act.
The decision aims to provide exemption or incentives to the designated companies from specific Acts outlined in Schedule II of the aforementioned Act.
Additionally, the Cabinet has authorised the publication of orders for the same through gazette notifications.
The companies approved for designation include;
Port City – To carry out business as a service provider of Outsourcing of business processes for the overseas entertainment industry.
Iviva Pte – For running a business as an Information Technology service provider that creates products and solutions powered by Smart City Information Technology to support the various tasks of global clients in transitioning to a low carbon economy.
Echelon Trade – Running a trading business in textiles, apparel, luxury watches, gold and gems, electrical appliances and cosmetics across multiple global markets.
99x Technology As – To run a service providing business to global independent software businesses for crafting digital solutions for real user issues by production, engineering and innovation as well as website development, and by improving mobile applications.
“By providing exemption or incentives from specific regulatory Acts, the Government aims to create a conducive environment for these businesses to thrive and contribute to the development of key sectors such as information technology, trade, and outsourcing services,” Cabinet Co-Spokesman and Minister Bandula Gunawardena has said.
OSL take:
The Colombo Port City Project in Sri Lanka is aimed at taking the country to the next level of development. Given Sri Lanka’s strategic positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed with other countries along with the target of becoming a regional hub have all increased attention on Sri Lanka among foreign businesses/investors. With Sri Lanka working towards becoming a regional hub, Sri Lankan authorities are engaged in many promotional campaigns in foreign countries to attract more foreign investments to the country while also further strengthening and expanding Sri Lanka’s trade ties with other countries. It is in such a backdrop that there is a pick up in business and investment activities in the Colombo Port City. In order to further attract investments, the Port City offers incentive schemes for the foreign businesses/investors entering the project. Sri Lanka’s prominence in China’s Belt and Road Initiative (BRI) will also attract investments to the Colombo Port City. Given the growth and business potential in the country, foreign businesses/investors could confidently explore the growing opportunities in the Colombo Port City Project.