Volume II

Colombo Port City Economic Commission ACT

Arrangement of Sections

1. Short title.

PART I
Establishment of the Colombo Port City Special Economic
Zone and the Colombo Port City Economic Commission

2. Establishment of the Colombo Port City Special Economic Zone.

3. Establishment of the Colombo Port City Economic Commission.

4. Master Plan of the Colombo Port City.

PART II
Objectives and Powers, Duties and Functions of the Commission

5. Objectives of the Commission.

6. Powers, duties and functions of the Commission.

PART III
Composition of and the Administration and Management
of the Affairs of the Commission

7. Composition of the Commission and appointment of the Chairperson.

8. Term of office.

9. Re-appointment, resignation and removal &c,.

10. Quorum and meetings of the Commission.

11. No act or proceeding of the Commission to be invalid by reason of a vacancy or any defect in the appointment of a member.

12. Remuneration of Chairperson and members.

13. Procedure if Chairperson or member has an interest in any person to whom a licence has been issued under this Act.

14. Commission to manage the Fund of the Commission.

15. Audit of the accounts of the Commission.

16. Maintenance of books and accounts.

17. Commission to call for information.

18. Delegation of the powers, duties and functions of the Commission.

19. Administrative units of the Commission.

20. Commission, its officers and other employees not to be liable for acts done in good faith.

21. Expenses incurred by the Commission in any suit or proceeding.

22. Expenses incurred by a member, officer, &c,. of the Commission in any suit or proceeding.

PART IV
Fund of the Commission

23. Fund of the Commission.

PART V
The Director-General and the Staff of the Commission

24. Appointment of the Director-General of the Commission.

25. Powers, duties and functions of the Director-General.

PART VI
Application for and Approval as an Authorised Person, Agreement Required to
be Signed, Single Window Investment Facilitation, Sri Lanka Citizens
Engaging in Business, Employment, Purchasing, Leasing or
Renting Property, or Utilising Facilities or Services

26. Authorised persons to be permitted to engage in business in and from the Area of Authority of the Colombo Port City.

27. Application for registration, licence or authorisation or other approval, as may be required to engage in business in and from the Area of Authority of the Colombo Port City.

28. Commission may call for further information.

29. No information which is false to be included in the application.

30. Commission to function as the Single Window Investment Facilitator in relation to the grant of any registration, licence, authorisation or other approval in terms of this Act.

31. Registration, licence, authorisation or other approval to be granted by the Commission to operate as an authorised person.

32. Commission required to enter into an agreement with every authorised person.

33. Commission to be the Single Window Investment Facilitator for all other permits &c,.

34. Procedure for the suspension, revocation or cancellation of any registration, licence, authorisation or other approval, or any visa, entry or work permit or other approval after grant or issue of the same.

35. Authorised person permitted to employ a resident or non-resident.

36. Authorised person may maintain a Sri Lanka Rupees Account in a licensed commercial bank in Sri Lanka to convert Sri Lanka Rupees as may be prescribed.

37. Authorised person may apply to engage in business in Sri Lanka with a citizen of Sri Lanka or resident of Sri Lanka, doing business in Sri Lanka outside the Area of Authority of the Colombo Port City.

38. Lease of Marketable Land, or transfer on freehold basis, lease or rent of condominium parcels, in designated foreign currency (other than in Sri Lanka Rupees).

39. Lease of Marketable Land, or transfer on freehold basis, lease or rent, of premises or condominium parcels in Sri Lanka Rupees.

40. A citizen or a resident of Sri Lanka may utilise facilities or services within the Area of Authority of the Colombo Port City.

PART VII
Offshore Companies to Operate within the Area of
Authority of the Colombo Port City

41. Registration of companies as offshore companies for the purposes of this Act.

PART VIII
Offshore Banking Business in and from the Area
of Authority of the Colombo Port City

42. Licence required to engage in offshore banking business in and from the Area of Authority of the Colombo Port City.

43. Cancellation of a licence issued under this Part of this Act.

44. President to make regulations applicable to offshore banking business in and from the Area of Authority of the Colombo Port City.

45. Regulations to provide inter alia for matters noted.

46. Nature of business that may be authorised to be carried on by those engaged in offshore banking business.

47. A financial statement required by every company to whom a licence has been issued.

48. Preparation of an annual report.

49. Commission may, in certain circumstances, carry out an examination and may impose restrictions.

50. Maintenance of books and accounts.

51. Power of Monetary Board to call for information.

PART IX
Determination and Grant of Exemptions or Incentives for the
Promotion of Businesses of Strategic Importance

52. Grant of exemptions or incentives to Businesses of Strategic Importance.

53. Details of Businesses of Strategic Importance to be specified by Order.

PART X
Applicability of the Condominium Management Authority
Law and the Apartment Ownership Law

54. Application of the Condominium Management Authority Law and the Apartment Ownership Law within the Area of Authority of the Colombo Port City.

55. Commission may seek the concurrence of the Condominium Management Authority.

PART XI
Applicability of the Securities and Exchange Commission Act

56. Operation of stock exchange or market, within the Area of Authority of the Colombo Port City.

57. Application of the Securities and Exchange Commission Act within the Area of Authority of the Colombo Port City.

58. Commission to seek concurrence of the Securities and Exchange Commission.

PART XII
Estate Manager and Provision of General Services

59. Estate Manager.

60. Powers of the Estate Manager.

61. Estate Manager to be an authorised person.

PART XIII
International Commercial Dispute Resolution Centre

62. Facilitation of establishing an International Commercial Dispute Resolution Centre.

PART XIV
Priority in Hearing Legal Proceedings

63. Courts to give priority to legal proceedings.

PART XV
Interim Provisions and Investment Protection

64. Authorised person to be permitted to engage in business outside the Area of Authority of the Colombo Port City as an interim measure.

65. Any transfer, lease or agreement executed by the Urban Development Authority to be deemed to be documents executed by the Commission.

66. Agreements entered into by the Board of Investment of Sri Lanka to be deemed to be agreements entered into by the Commission.

67. Registration, licence, authorisation &c,. granted under this Act to continue without amendment or termination till the expiry.

PART XVI
Miscellaneous Provisions

68. Offences.

69. Offences by a body of persons.

70. Recovery of surcharges and penalties.

71. Regulations.

72. Rules to be published in the Gazette.

73. Certain enactments to have no application within the Area of Authority of the Colombo Port City.

74. Nothing deemed to restrict the powers, duties and functions vested in regulatory authority.

75. Interpretation.

SCHEDULES

11 of 2021.

AN ACT to provide for the establishment of a Special Economic Zone; to establish a Commission empowered to grant registrations, licences, authorisations and other approvals to carry on businesses and other activities in and from such zone; to provide for the identification of a single window investment facilitator for the promotion of ease of doing business within such zone; to determine and grant incentives and other exemptions for the promotion of businesses of strategic importance within such zone; to enter into transactions as provided, of Government Marketable Land and Project Company Marketable Land and premises and condominium parcels standing thereon within such zone; to promote and facilitate international trade, shipping logistic operations, offshore banking and financial services, information technology and business process outsourcing, corporate headquarters operations, regional distribution operations, tourism, and other ancillary services within such zone; to establish an International Dispute Resolution Centre within such zone; to promote urban amenity operations and the settlement of a residential community within such zone; and for matters connected therewith or incidental thereto.

[Date of Commencement: 28th May, 2021]

Preamble

WHEREAS in furtherance of the Directive Principles of State Policy enshrined in the Constitution of the Democratic Socialist Republic of Sri Lanka, which requires the State to ensure by means of public and private economic activity, the rapid development of the country, whilst co-ordinating public and private economic activity in the national interest, the Government of Sri Lanka has considered it necessary to establish a Special Economic Zone within which there is ease of doing business that will attract new investments primarily to facilitate the diversification of the service economy, to promote the inflow of foreign exchange into such Zone, to generate new employment opportunities within such Zone whilst facilitating the development of technical, professional, technological and entrepreneurial expertise and to facilitate the promotion of urban amenity operations within such Zone, through the settlement of a residential community:

AND WHEREAS it has become necessary having regard to the national interest or in the advancement of the national economy, to establish a Special Economic Zone to be called “the Colombo Port City Special Economic Zone” which will be an international business and services hub with specialised infrastructure and other facilities within such Zone, for the promotion and facilitation of economic activity including international trade, shipping logistic operations, offshore banking and financial services, information technology and business process outsourcing, corporate headquarters operations, regional distribution operations, tourism, and other ancillary services.

1. Short title.

This Act may be cited as the Colombo Port City Economic Commission Act.

PART I
Establishment of the Colombo Port City Special Economic Zone and the Colombo Port City Economic Commission

2. Establishment of the Colombo Port City Special Economic Zone.

There shall be established a Special Economic Zone to be called the Colombo Port City Special Economic Zone (hereinafter referred to as the “Colombo Port City”). The Area of Authority of the Colombo Port City herein established, shall consist of the boundaries as set out in Schedule I to this Act.