• Tue. Sep 20th, 2022

Sri Lanka allows offshore banks in Colombo Port City: Commission

ByChad J. Johnson

Aug 5, 2022

ECONOMYNEXT – Sri Lanka’s central bank and finance ministry have approved four licenses to set up offshore banks in the China-backed Colombo Port City area, its regulatory commission said.

“The Monetary Board and the Ministry of Finance initially approved the CPCEC-regulated offshore licenses for 4 banks,” said the Colombo Port City Economic Commission.

“..[T]The Central Bank of Sri Lanka has created a new category of accounts available to all banks under its regulatory jurisdiction, the Colombo Port City Investment Account, designed to facilitate the inflow of funds to be used for investing in Colombo Port City .

The Port City area reclaimed by the China Harbhour Engineering Group is to be a dollarized area free from monetary instability and exchange controls resulting from central bank open market operations.

Six land leases worth US$200 million have been granted to investors, the Colombo Port City Economic Commission said. They should invest 600 million dollars.

The Colombo Port City Commission was also in talks with the Singapore International Arbitration Center (SIAC) to set up an international commercial dispute resolution centre.

A duty-free shopping center with remote check-in and baggage transport services is also being set up. Two international operators will operate it.