Ahead of debate this week, Parliamentary Committee on Public Finance briefed on progress and plans of Port City
BOI says ready for first investment in Port City
$ 100 b investment to be implemented in 2 phases
Work on International Financial Centre scheduled for completion in 2025
Committee says projects that get tax concessions must contribute to overall economy
Ahead of the debate starting tomorrow, the Parliamentary Committee on Public Finance (CPF) last week was briefed on the progress and plans of the multi-billion-dollar Colombo Port City project, with members emphasising that sweeping tax concessions to it must ensure substantial contribution to economic growth.
Connected issues came up when the CPF, chaired by Anura Priyadarshana Yapa, discussed the Order placed before Parliament under the Strategic Development Projects Act, which extends tax benefits to the Colombo Port City.
Board of Investment Chairman Sanjaya Mohottala told the committee the first project of the Colombo Port City, with an investment of $ 100 billion, is to be implemented in two phases.
The first phase of the establishment of this International Financial Centre, which is scheduled to be completed in 2025, will consist of one international Grade A high rise-office tower, two high-end residential towers and a retail podium.
Phase two will consist of two international Grade A high-rise office towers and a retail podium, the CPF was informed.
The Strategic Development Projects Act provides tax concessions and the employment of foreign workers for the project. However, 75% of unskilled workers, skilled workers and higher-level employees will be recruited locally.
Members of the CPF emphasised to the BOI that such projects, which get wide ranging tax concessions, must make a direct contribution to the overall economy of the country.
Separately, the committee also last week approved the Order in relation to the export quality tyre manufacturing project of Ceylon Tyre Manufacturing Company Ltd., which is scheduled to commence this July inside the Hambantota International Port premises.
At the meeting, BOI Chairman Mohottala stated that although this is a project that will receive huge tax relief, the benefits will accrue to the local rubber industry, including growers and tappers.
Committee Chair Yapa inquired from the BOI Chairman about the systematic increase in rubber production in the country.
State Minister Susil Premajayantha drew the committee’s attention to the high prices of Sri Lankan domestic products compared to other countries and Minister Vidura Wickremanayake stated the tax relief received by foreign companies should flow to local industrialists as well.
Committee members Minister Sarath Weerasekera, State Ministers Susil Premajayantha, Vidura Wickramanayake, Dr. Nalaka Godahewa, and MPs M.A. Sumanthiran, Dilan Perera, and Dr. Harsha de Silva were present.
(FT)