Legal framework in place for Port City bank accounts

The legal framework for the operation of bank accounts for investments in Colombo Port City has been made operational.

The overarching regulations were made by way of Gazette No 2282/59 on June 3. Directives by the Department for Foreign Exchange were subsequently made on June 28.

Accordingly any foreign entity or local entity with funds ‘out of inward remittances received from overseas’ shall be able to operate bank accounts to route investments into the Port City. Two types of accounts for investors and investees have already been established as Colombo Port City Investment Account (CPICA) under the new regulations.

Further employees of authorized persons or anyone engaged in business with an authorized person may receive funds from these accounts.

To insulate the local financial sector from the Port City operations, ‘no entity shall be able to credit funds by way of conversion of rupees.’

Eligible Persons shall be those that are made authorized under the Provisions of the Colombo Port City Economic Commission. Financial institutions in Port City shall fall under the purview of the Port City Commission and not the Central Bank of Sri Lanka.

Meanwhile, an official from Colombo Port city said that this move will also enable local staff to earn in foreign currency very soon.

“This will also help to reverse the brain drain and help to keep talented local HR in Sri Lanka.” DP