30/01/2026
Key Highlights
• Key changes include the insertion of a new subsection (2a) in section 27, which stipulates that the Commission shall not charge certain fees from applicants unless a license and certificate of registration are issued. Furthermore, section 35 is replaced to allow persons with prior approvals to employ residents or non-residents, remunerating them in designated foreign currency. For a period of three years, employment income for resident employees is exempt from income tax and deemed a permissible credit to a personal foreign currency account, while non-resident employees are exempt from income tax on both local and foreign earnings. After this period, all employment income will be liable to income tax.
• The Act introduces extensive amendments to the regulatory framework governing offshore banking business within the Colombo Port City, primarily through revisions to Sections 42, 43, 45, 46, 48, and 49, and the introduction of new Sections 42A to 42F. These new provisions formally establish the Central Bank’s authority to regulate and supervise offshore banking activities, including the power to issue orders and directions and to prescribe capital adequacy, liquidity, and risk management requirements in line with internationally accepted standards. The Central Bank is further empowered to require corrective measures and impose penalties in cases of non-compliance. Acting on the recommendation of the Central Bank, the Minister of Finance may suspend, revoke, or cancel an offshore banking license, subject to due process safeguards afforded to the licensee.
• Further amendments focus on the identification and monitoring of Businesses of Strategic Importance. Section 52 is amended to allow for the prescription of criteria for identifying such businesses, and new subsections are added regarding technical analysis by the Ministry of Finance for tax-related exemptions and periodic reviews of incentives. New sections 52A to 52C introduce ex-post monitoring of key performance indicators for these businesses, outlining procedures for addressing non-compliance, including the restriction, suspension, or revocation of exemptions and incentives, or the imposition of administrative penalties. The Commission is mandated to issue notices and provide opportunities for businesses to show cause before taking such actions, ensuring transparency and accountability in the management of strategic investments.
🔵 Colombo Port City Economic Commission (Amendment) Act, No. 1 of 2026
🔵 2026 අංක 1 දරන කොළඹ වරාය නගර ආර්ථික කොමිෂන් සභාව (සංෙශා්ධන) පනත
🔵 கொழும்பு துறைமுக நகர பொருளாதார ஆணையம் (திருத்தம்) சட்டம், 2026 ஆம் ஆண்டின் 1 ஆம் எண்.
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