Business
Parliament approves offshore banking regulations at Port City Colombo
Port City Colombo announced that the two gazetted regulations, Offshore Banking and Offshore Banking — Prudent Management and Confidence, were officially passed by the Parliament of Sri Lanka on September 4th, 2024.
‘This milestone represents Port City Colombo’s ambitious aim to position itself as a formidable regional financial centre, which would attract an increased inflow of Foreign Direct Investments into Sri Lanka, a Port City Colombo press release said.
The release added: ‘As of date, seven local banks and three international banking corporations are in discussion to set up offshore banking branches within the area of authority of the Colombo Port City Special Economic Zone. Six local banks, including the Commercial Bank of Sri Lanka, Sampath, HNB, DFCC, NDB, and NTB, have additionally been approved as Authorised Persons (AP’s) by the Colombo Port City Economic Commission (CPCEC). The commercial operations of the offshore banking branches at Port City Colombo will be governed by the aforementioned regulations, which were initially gazetted on 26th July 2024. These branches will also operate under the direct supervision and oversight of the Central Bank of Sri Lanka and the Financial Intelligence Unit, which further reinforces the growing investor confidence in Port City Colombo as a regional investment hotspot.
‘Being a foundational regulatory framework that underpins Port City Colombo’s progressive financial environment, the offshore banking regulations provides prospective investors exploring business set-up opportunities a diversity of attractive offshore banking benefits. These encompass direct transactions in any designated foreign currency with any other offshore banking unit or non-resident; the acceptance of savings, time and demand deposits from any Authorised Person or a non-resident in any designated foreign currency; extension of accommodation to any non-resident in any designated foreign currency; borrow any sum in a designated foreign currency from any non-resident; and engage in any other transactions authorised by the Colombo Port City Economic Commission with the concurrence of the Central Bank of Sri Lanka.
‘The offshore banking regulations will facilitate the development of a thriving international banking ecosystem at Port City Colombo, which will be a precursor for other financial products, such as stock trading and fund management. Enabling higher transactional efficiencies and more fortified exchange of securities, these regulations will allow businesses to draw on their capital strength. Companies specialising in the export of services would also experience greater flexibility and reliability in terms of foreign currency transactions, which will act as a retainer of foreign currency within the country. The presence of offshore branches of international banks would promote greater financial stability and provide the dexterity to invest in large-scale projects for prospective global investors. Further, the offshore banking system at Port City Colombo will foster the creation of a circular financial economy, due to the increased circulation of foreign currency. The regulations will also augment the Colombo Port City Special Economic Zone’s fiscal and non-fiscal incentives, which include attractive tax exemptions for 25 plus years, 100% capital and profit repatriation, 100% foreign ownership, and so forth.
‘With the aim of becoming a competitive offshore economy and a prime business destination, Port City Colombo demonstrates its readiness for operationalised commercial activity. For more information about our investment opportunities, please visit www.portcitycolombo.lk. ‘
Business
Needs of populace hit by Cyclone Ditwah seen as waiting to be addressed
By Hiran H. Senewiratne
The government is yet to address fully the needs of the Cyclone Ditwah affected populace though one year has elapsed. The devastation cost the country more than US $ 4.1 billion, an Australia-based Chartered Engineer of Sri Lankan origin said.
‘Cyclone Ditwah affected more than 2.2 million people in 25 districts, which is considered to be one tenth of the population. However, only 39 percent of the allocated funds have been spent to date, the speaker, a one-time General Secretary of the JVP, now living in Australia Lionel Bopage said.
He made these comments at a Rotary Club Colombo South monthly meeting held at the Kingsbury Hotel, Colombo recently.
Bopage quoted from a Loughborough University research report published in February to the effect that Sri Lanka has under invested in prevention but over invested in recovery.
Bopage added: ‘The largest single economic category affected were not buildings but the agriculture sector which provides livelihoods for the majority of affected persons. Therefore agricultural livelihoods have been hit most.
‘More than 58,000 hectares of paddy lands were flooded in the Eastern districts alone, while 46 reservoirs reached critical spill level or failed outright following the disaster.
‘A rapid education sector assessment found that 1,682 schools were affected and more than 555,000 children were unable to attend schools. Further, 622 water supply schemes had been left non-functional and apart from that 11300 homes were damaged or destroyed. But reconstruction is happening at a very slow pace.
‘Tens of thousands of households in the hill country and in the East are still living in damaged properties and on unstable slopes drawing water from schemes that have not been restored.
‘ A Post Disaster Needs Assessment put the cost of resilience at US$ 3.4 billion but restoration work is happening at a slow pace even with foreign donor assistance.’
Business
WB forecast buoys bourse but weak investor participation slows momentum
By Hiran H. Senewiratne
The CSE yesterday kicked off on a positive note due to a World Bank forecast that Sri Lanka could achieve 4.4 percent economic growth this year but later lost momentum due to weak investor participation.
Amid those developments both indices moved upwards. The All Share Price Index went up by 132 points while S and P SL20 rose by 21.02 points.
Turnover stood at Rs 1.97 billion with three crossings. Those crossings were; Lanka IOC 2.7 million shares crossed to the tune of Rs 470 million; its shares traded at Rs 127, CCS 2.7 million shares crossed to the tune of Rs 315 million; its shares sold at Rs 118 and JKH five million shares crossed for Rs 91.5 million; its shares traded at Rs 18.30.
In the retail market companies that mainly contributed to the turnover were; Commercial Credit and Finance Rs 126 million (1.3 million shares traded), Lanka IOC Rs 98 million (775,000 shares traded), Asiri Surgical Hospitals Rs 77 million (7.6 million shares traded), Commercial Bank Rs 51.3 million (307,000 shares traded), Sampath Bank Rs 46 million (325,000 shares traded), HNB Rs 37 million (98000 shares traded) and Tokyo Cement Rs 31 million (393,000 shares traded). During the day 50 million share volumes changed hands in 14547 transactions.
It is said that the petroleum sector performed well, especially Lanka IOC, while in the banking sector counters, especially Commercial Bank and Sampath Bank performed well. In the manufacturing sector, JKH impressed.
TAL Lanka Hotels announced that it has scheduled an Extraordinary General Meeting on October 29 to obtain shareholder approval for a proposed Rs 1.87 billion rights issue. The proceeds will be utilized for the repayment of bank borrowings, part refurbishment of the Taj Samudra Hotel in Colombo, settlement of vendor liabilities, and general corporate requirements.
Yesterday the rupee was quoted at Rs 330.95/331.05 to the US dollar in the spot market, weaker from Rs 330.85/95 the previous day, while bond yields were quoted broadly steady, dealers said.
Business
Huawei continues to showcase practical AI applications at Sri Lanka AI Week 2026
Sri Lanka AI Week 2026 continued into its second day bringing together government, industry, academia and technology partners to explore practical applications of artificial intelligence. As the AI Technology Partner for the second consecutive year, Huawei showcased 18 use cases spanning government, education, finance, industry, green energy and everyday life, demonstrating how AI can be applied to real-world needs.
Prime Minister Dr. Harini Amarasuriya visited the Huawei exhibition together with officials from the Ministry of Education, Higher Education and Vocational Education, experiencing the Smart Classroom, AI in Education and MindGraph by Beijing Normal University demonstrations. The Smart Classroom demostration highlighted how connected technologies can bring teachers and students in different locations into a shared learning environment, while the AI in Education showcase demonstrated how AI can support teachers, enhance learning and enable more personalised education. The Prime Minister praised the efforts of the Ministry of Education, Higher Education and Vocational Education, Huawei and their partners to demonstrate practical applications of AI in education, noting the role of technology in supporting teachers, expanding learning opportunities, and advancing a more inclusive, equitable and future-ready education system.
Later in the day, Deputy Minister of Digital Economy Eng. Eranga Weeraratne, Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe, Secretary to the Ministry of Digital Economy Waruna Sri Dhanapala, and Chinese Ambassador Wei Huaxiang visited the Huawei exhibition and explored the AI Hands-On Classroom AI Empowering Industry, AI in Education and Smart Classroom demonstrations. Deputy Minister Weeraratne praised Huawei’s practical approach to showcasing AI applications, noting their relevance to Sri Lanka’s digital transformation across education, industry and skills development. The engagement also extended across the wider AI ecosystem, with industry professionals, technology partners, academics and other visitors engaging with the demonstrations and expressing appreciation for Huawei’s practical approach to applying AI across different areas of society and the economy.
Daniel Wu, CEO of Huawei Sri Lanka, said that Huawei will continue bringing global experience, technology and ecosystem resources to Sri Lanka, while working side by side with local partners to build local capabilities, develop local talent and create real value for the country. “I believe that by working together, we can make AI not only more intelligent, but also more local, more inclusive, and more meaningful for everyone,” he said.
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