Colombo Port City Economic Commission Releases January To August Progress Report for FY 2023

Colombo, Sri Lanka – September 14th, 2023: The Colombo Port City Economic Commission (Commission) shares its progress report for the fiscal year 2023, covering the period from January to August 2023. The Commission serves as the Single Window Investment Facilitator, entrusted with streamlining and enhancing activities within Colombo Port City for investors, businesses, and residents, towards creating a business-enabling environment.

Legal Milestones

During this period, the Commission achieved significant legal milestones that underscore its commitment to creating a robust business environment within Colombo Port City:

• An Agreement to Lease was entered into with Asiri Port City Hospital (Private) Limited, paving the way for the execution of the Indenture of Lease and Investor Agreement, subject to fulfilling specific conditions precedent.
• The Colombo Port City (Duty-Free Operations) Rules, No. 01 of 2023, were officially published in the Gazette on May 22, 2023, as reference number 2333/14.
• A strategic collaboration was established between the Commission and Ceylon Chamber of Commerce (CCC)-Institute for the Development of Commercial Law and Practice (ICLP) International ADR Center (Guarantee) Limited (IADRC), designating IADRC to provide Alternate Dispute Resolution Services within the jurisdiction of Colombo Port City. Moreover, a pivotal agreement was reached among the Commission, CCC-ICLP International ADR Center, and the Ministry of Justice, setting up a state-of-the-art Arbitration Center with modern furnishings and equipment.
• The Colombo Port City Development Control Regulations (DCR), which regulate all construction activities within the area of authority of Colombo Port City, was published in the extraordinary gazette No 2334/47 on June 02nd, 2023. This updated version represents an enhanced version of the initial publication in April 2022.
• The Parliament of the Democratic Socialist Republic of Sri Lanka approved a comprehensive incentives programme proposed by the Commission in consultation with the Minister of Investment Promotion, the guidelines for granting exemptions or incentives to businesses designated as Businesses of Strategic Importance (BSI). This was published by Extraordinary Gazette No. 2343/60, on August 04th, 2023.

Commercial Achievements

Several commercial achievements were realized during this period, indicating progress and forward momentum within Colombo Port City:

• A Cabinet Memorandum CP 23/0510/631/007 was successfully secured, which is significant as this facilitates Duty-Free operations and designates the Duty-Free mall operator and Duty-Free retailers as Businesses of Strategic Importance.
• Government Notification No 2333/14 established Duty-Free Rules, defining eligibility criteria for shoppers, permissible purchases, and the applicable quantity and value limits under the Port City Duty-Free regime.
• Key players, including Port City Duty-Free Private Limited (a subsidiary of CHEC Port City Private Limited) and Duty-Free Retail operator One World Duty-Free (ODF) Pte, were officially inducted as Authorized Persons (AP), with associated licensing terms.
• Interior work on the Duty-Free Mall advanced, with site location handovers to retail operators anticipated to commence in December 2023.
• To facilitate efficient Customs matters, a dedicated 5-member executive team from Sri Lankan Customs was appointed, overseeing goods import, clearance procedures, and Duty-Free operation compliance via a Customs Standard Operating Procedure.
• Collaborations with the Department of Excise were initiated to develop separate regulations for Colombo Port City, aligned with trading hours, license tenure, and other norms to position Colombo Port City as a regional tourist destination.
• The Colombo Port City preliminary approval from the Civil Aviation Authority was secured for the creation of a Duty-Free Mall passenger departure checking-in facility, with discussions ongoing to finalize processes and commercials through collaboration with relevant stakeholders.

Engineering Progress

The engineering segment of Colombo Port City witnessed progress, contributing to its overall development:

• The Colombo Port City Development Control Regulations No. 1 of 2023 were formally published via Extraordinary Gazette No. 2334/47 on June 2, 2023, currently awaiting Parliament approval.
• Regulations governing Apartment Ownership and Condominium Management were drafted and planned to be submitted to the Ministry of Investment Promotion for publication.
• Site inspections were conducted, addressing infrastructure development issues identified in Phase I through collaboration with the Jointly Appointed Employer's Quality Representative and Project Monitoring Unit.

Technology Initiatives

The Commission embraced technology and innovation to drive Colombo Port City’s growth and sustainability:

• The establishment of a Technology Committee, consisting of industry IT/Technology leaders, Commission officials, and a representative from CHEC Port City Colombo, is aimed at advising and guiding on technology-related matters, including the development of Colombo Port City as a smart city.
• A Memorandum of Understanding (MoU) was signed with Mastercard, fostering collaborations to explore in data insights, technology innovation, sustainable growth, and digital accessibility, as part of the City Possible™ initiative.
• The Duty-Free verification system is being developed and will be operational to monitor compliance with Duty-Free Rules when Port City Duty-Free operations commence.
• The official Commission website was launched in early 2023, followed by a dedicated portal for Authorised Persons applications.
• An official Commission mobile application was also launched, available on both Android and iOS platforms, extending the same website services.
• A Colombo Port City mobile application for activity booking and visits to the Colombo Port City was launched, available on Android and iOS platforms.

These achievements collectively underscore the ongoing commitment of the Colombo Port City Economic Commission to drive economic growth, innovation, and a dynamic business environment within Colombo Port City. The Commission looks forward to continued collaboration and progress in the upcoming fiscal year.