Banks to commence operations at Port City Colombo

Banks are set to begin operations at Port City Colombo, following the gazetting of offshore banking regulations, which pave the way for the area to become a major financial hub. 

On July 26, the Offshore Banking and Offshore Banking — Prudent Management and Confidence regulations were gazetted, enabling commercial operations within the authority of the Special Economic Zone. These regulations highlight Port City Colombo’s readiness to become a regional offshore financial center in South Asia, according to Port City Colombo representatives.

“Being a core set of regulations that will form the underlying foundation for Port City Colombo’s progressive business-friendly environment, this milestone will further strengthen global investor confidence and promote the increase of foreign direct investment inflows into the Sri Lankan economy,” said Xiong Hongfeng, Managing Director of CHEC Port City Colombo.

The new regulations will enable commercial entities to engage in a variety of permitted offshore banking activities. These include transactions in any designated foreign currency with other offshore units or non-residents, accepting savings, time, and demand deposits from authorized persons or non-residents in any designated foreign currency, borrowing in any designated foreign currency from non-residents, and conducting other transactions authorized by the Colombo Port Economic Commission with the concurrence of the Central Bank of Sri Lanka.