Sri Lanka’s China-backed Port City to issue US$2000 operating licenses
ECONOMYNEXT – Sri Lanka’s China backed Port City’s regulator has issued rules for businesses to get operating licenses paying an annual fee of 2000 US dollars, in gazette notice under the signature of President Ranil Wickremesinghe.
“An application for a licence to qualify as an Authorised Person and to be permitted to carry on business in and from the Area of Authority of the Colombo Port City may be made by the person proposing to engage in business in and from the Area of Authority of the Colombo Port City,” according to regulations issued by Colombo Port City Commission.
“On evaluation of the application and supporting documents, the Commission shall issue a Letter of Approval In Principle, approving the application in principle but subject to conditions to be satisfied prior to the issue or grant of a licence,..”
Businesses will also have to comply with other regulations applicable including central bank concurrence in the case for offshore banking.
Dowload Port City license gazette 2299-46-licenses
A business trying to get a license to operate within the Port City area will have to pay an 2,500 US dollar application fee and a 2,000 Us dollar annual fee.
The Colombo Port City economic zone was reclaimed from the sea by CHEC Port City Colombo, a unit of China’s, CCCC group.
The Colombo Port City area will be ‘dollarized’ and permitted to use multiple currencies, protecting its businesses and other denizens from the central bank’s policy rate, through which forex shortages and currency depreciation is triggered.
The rest of the country however will be exposed to the policy rate. Sri Lanka’s economic buraucrats and also economists outside have strongly resisted attempts to curb the central bank’s policy rate and take away its ability trigger forex shortages, depreciate the currency and trigger economic crises and social unrest.
Sri Lanka is currently in the grip of the worst currency crises in the history of the 72 year old central bank. (Colombo/Sept28/2022)