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Colombo Port City: Regulations gazetted to register offshore companies

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The Government has gazetted regulations to fully permit the registration of offshore companies in the Chinese-built Colombo Port City but the promulgation of a framework allowing incentives and exemptions to “businesses of strategic importance” (BSIs) is still overdue, official sources said.

The enactment of enabling legislation to allow for widespread activities within the Port City continues to lag, the sources pointed out.

For instance, guidelines for businesses to obtain operating licences were first published in late September. They said companies seeking permits to set up within the Port City area must pay a US$ 2,500 application fee and a US$ 2,000 annual fee to allow them to qualify as “authorised persons” in the specified areas.

But application forms for the registration of such businesses with the Registrar-General of Companies (RGC) were only gazetted two weeks ago. Accordingly, provided the required documents are in order, the RGC shall register a business as an offshore company within three days. And it will be entered into a Register of Offshore Companies-Colombo Port City Commission.

However, the Colombo Port City Economic Commission Act also makes provision for companies to be categorised as BSIs whereupon they will receive exemptions or incentives. These must be promulgated by regulation. But they are under discussion, the sources said, expressing concern that investor interest could flag. The classifications and definitions are yet to be decided upon, they said. As it stands, therefore, a company can be licensed and continue to operate under the directors of the Colombo Port City Economic Commission Act minus the incentives and exemptions it would receive if classified as a BSI, they said.

“The latest gazette should have come out two-and-a-half months ago,” one source pointed out. “But two gazettes were issued and one wasn’t. A lot of investor interest was built up. They are now waiting to see what incentives and exemptions they would qualify for. Bear in mind that Colombo Port City faces competition from a global perspective.”

In July, the Central Bank of Sri Lanka (CBSL) authorised a special class of bank account called the Colombo Port City Investment Account (CPCIA) exclusively to carry out business in the Port City Special Economic Zone (SEZ).

There are two types of CPCIAs—investor and investee. The accounts may be used by companies seeking to attract foreign currency from overseas to establish businesses.

Banks setting up within Port City will be licensed under the Colombo Port City Economic Commission Act for carrying out business within its area of authority. They will be governed by rules and regulations issued by the Commission and not CBSL. But the guidelines are formulated in consultation with the Monetary Board of Sri Lanka and the Finance Ministry.

(sundaytimes.lk)

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Probe launched over student death at Wayamba National College of Education

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The Ministry of Education (MOE) has launched an urgent investigation into the suicide of a second-year female student at the Wayamba National College of Education in Bingiriya.

The student (24), a resident of Teldeniya, Kandy, was found dead in her dormitory on May 23. Friends and family allege she faced mental distress due to harassment by lecturers.

Students held a silent protest on May 23 calling for immediate action and demanding accountability.

Police say that statements have been recorded from several persons, including lecturers and students, regarding the death.

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03 remanded over shooting of Halloluwa’s vehicle

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The Colombo Magistrate’s Court on May 24 ordered to remand 03 suspects over the shooting of Thusitha Halloluwa’s vehicle.

They have been remanded until May 29.

The remanded suspects include the shooter’s wife, who was arrested at a Maharagama housing complex.

Officers from the Colombo Crime Division (CCD), who are investigating the shooting incident further state that the other 02 arrested are the security guard of the housing complex and a person who was traveling with the shooter.

Investigations have also revealed that the security guard of the apartment complex alerted the shooter about the police arrival during the raid, leading the shooter to flee immediately.

The vehicle of Thusitha Halloluwa – the former DG of Public Relations to former President Ranil Wickremesinghe, was shot in Narahenpita on May 17.

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Basil Rajapaksa absent from court; bail not revoked

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Matara Magistrate Aruna Buddhadasa recently ordered Basil Rajapaksa – founder of the Sri Lanka Podujana Peramuna and former Finance Minister, to appear before the Matara Magistrate’s Court on November 21.

The Magistrate made the order when he took up an existing case regarding a land in the Eliyakanda area of Matara that was purchased using allegedly illegally earned money of Rs.50 million.The FCID had filed this case against Basil Rajapaksa and 04 other defendants in 2017 over the alleged purchase of a 1.5 acre land in Eliyakanda, Matara under the name of his wife’s sister, using Rs.50 million allegedly obtained through illegal means.

The first suspect in this case is Tissa Galappaththi, the second suspect is Muditha Jayakody, the third suspect is former Minister Basil Rajapaksa, and the fourth suspect is Ayomi Galappaththi, the sister of the former Minister’s wife.The first suspect in this case is Tissa Galappaththi, the second is Muditha Jayakody, the third is former Minister Basil Rajapaksa, and the fourth is Ayomi Galappaththi, the sister of Rajapaksa’s wife.

While the first 02 suspects, who are out on bail, appeared in court, Basil Rajapaksa and Ayomi Galappaththi were absent.

Deputy Solicitor General Lakmini Girihagama, representing the Attorney General’s Department, noted that while Basil had been granted court permission to travel abroad until May 23, he failed to appear without a reasonable excuse and requested that his bail be revoked and a warrant issued.

In defense, President’s Counsel Anil Silva stated that his client had booked return flights for May 18 and 19, but US doctors had advised Rajapaksa against flying for 06 months after he had fallen off a chair, sustaining damage to his neck and nerves.

Girihagama questioned the claim, stating that the X Rays only indicated a neck sprain and a minor muscle strain. Noting that the medical reports were dated March 18, 2025, it was also questioned as to why tickets were booked for May 18 and 19 if doctors had actually advised against flying for 06 months. Therefore, Girihagama called for the court to revoke bail.

President’s Counsel Silva strongly defended his client, rejecting accusations of faking illness, affirming the credibility of US medical reports, and assuring the court of his client’s presence at the next hearing, arguing there is no need for a warrant or revoke bail.

After hearing both sides, Magistrate Aruna Buddhadasa decided not to issue a warrant or revoke bail, instructing that the accused be present on the next court date. The case was postponed to November 21.

(Source: Dinamina)

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