The Hon. Thilina Samarakoon

¶ 01 Hon. Deputy Speaker, today we debate the Bill to amend the Colombo Port City Economic Commission Act, No. 11 of 2021. This Bill focuses on how we, as a government, should appropriately intervene in and regulate economic activity in a special area such as the Port City, and how, by passing this Bill, we bring the Port City’s economic activity under a measure of oversight to ensure sound management of the economy.

¶ 02 We are debating this in a climate where one side—the Opposition and allied forces—hopes the economy will collapse so they can return to power. They dream that a breakdown will hand them governance again. But such a thing will not happen. Data shows the current macroeconomic stability we have achieved, which is now widely acknowledged. Yet the Opposition keeps making statements built on fantasies that will never be realized.

¶ 03 Recently, a secretary of a party who was an MP from Ratnapura publicly said that once the economy collapses, it should be handed to some “economic maestro,” who would then run the country. Their time is over. Their actions pushed the country into bankruptcy. Having taken over thereafter, we, as a new force, are managing the economy and taking it forward.

¶ 04 This amendment received Cabinet approval on 24 November 2025 and was published in the Gazette (Extraordinary Part II, Section 1) on 28 November 2025. Despite past controversies, we are intervening to make the Port City a business hub, a strategic location, and a place that can assume a leading role in development. Through this Bill, we intend to: - Exempt and rationalize employment-related income taxation within the Port City and provide clarity on periodic tax assessments and estimates. - Strengthen performance target monitoring and compliance oversight by the Port City Economic Commission. - Ensure all activities within the Port City are subject to Commission oversight. - Introduce effective banking supervision and other regulatory measures consistent with international standards, especially Basel II and Basel III frameworks.

¶ 05 Under Basel II/III, for banks operating within the Port City, we will ensure: - Minimum capital requirements; - Liquidity requirements; - Leverage ratio oversight; - Countercyclical capital buffers to maintain stability during economic swings.

¶ 06 In addition, the Ministry of Finance will act on the recommendations of the Central Bank of Sri Lanka for prudential regulation in the Port City, including resolution measures such as suspension or cancellation of licenses, and winding up of banking business where necessary. Authorized activities will be defined, with limits on resident and non-resident foreign currency transactions, and certain departures from domestic banking law will be set out for the Port City zone. Audits must be done by institutions approved by the Central Bank, with audit reports submitted to both the Central Bank and the Port City Commission. These measures prioritize safety, resilience, and crisis resistance of banks.

¶ 07 Anti-money laundering regulations must also be rigorously applied, ensuring a trustworthy banking system for businesses and investors within the Port City. This supports overall financial security and increases investor confidence. While responding to the recent cyclone, we are rebuilding with relief to affected people and initiating housing reconstruction in Anuradhapura under the leadership of the Hon. President.