The Hon. Chandima Hettiaratchi

¶ 01 Hon. Presiding Member, in debating the Colombo Port City Economic Commission (Amendment) Bill, I wish to outline its aims.

¶ 02 The Port City comprises about 664 acres, with roughly 439 acres buildable. To compete globally—given our geo-positioning near vast Asian and African markets—we need a specialized competitive economic zone to attract substantial FDI and improve our ease of doing business.

¶ 03 Practical issues emerged under the original Act and subsequent regulations. Accordingly, the President’s 2026 Budget emphasized the need for a transparent framework for tax relief. This Amendment empowers the Commission to grant and limit service-related tax concessions in line with a strengthened strategic-business regulatory framework. Regular reviews (e.g., quinquennial) are built in.

¶ 04 Some claim the new Bill “locks down” Port City and eliminates benefits. Not true. The Commission retains authority to review, amend, and refine concessions. We are aligning with international standards to prevent misuse—no allowance for money laundering, dumping illicit funds, or becoming a narcotics hub. We introduce criteria-based concessions, including employment and investment thresholds.

¶ 05 Primary Business of Strategic Importance: for USD 25 million with 100 employees, specified benefits apply. Tiered categories—e.g., Category A (USD 100 million), Category B (USD 500 million), Category C (USD 1,000 million)—each with defined tax-holiday and grace periods (e.g., up to 10–15 years linked to higher investments and 300+ jobs). This is a rules-based approach, unlike past discretion.

¶ 06 Beyond Port City and BOI, we will bring PPP laws and frameworks for joint ventures to broaden investment avenues and job creation. Despite a “vulgar opposition,” we will stay focused on the people’s needs and manage the economy responsibly. Thank you.