Parliament’s Public Finance Committee questions monitoring of foreign nationals after approximately 14,300 visas issued on Port City Commission’s recommendation

Parliament's Committee on Public Finance has questioned the practical feasibility of monitoring the activities of foreign nationals after being informed that approximately 14,300 visas had been issued on the recommendation of the Colombo Port City Economic Commission (CPCEC).

The committee reviewed the CPCEC’s investment promotion activities, the regulation of foreign investments, and related legal and administrative matters, according to a parliamentary press release issued on October 15.

The committee met in Parliament on October 8 under the chairmanship of Dr. Harsha de Silva, with deputy ministers, MPs and Commission officials participating.

Background

Colombo Port City is a 269-hectare development on reclaimed land adjoining Colombo’s commercial district, launched in 2014 with the involvement of the Sri Lankan government and developer CHEC Port City Colombo (Pvt) Ltd.

The Colombo Port City Economic Commission Act, No. 11 of 2021, established the special economic zone and the Commission responsible for administering and regulating business activities within it.

The zone is intended to attract investment in sectors including financial services, information technology and tourism, with the Commission empowered under the Act to grant business licences and other approvals.

Investment oversight

The committee emphasised the need to strengthen regulatory measures to prevent illegal activities within Port City and safeguard Sri Lanka’s international reputation.

Members also examined approvals for businesses designated as Businesses of Strategic Importance, future investment plans, and the progress, marketing and sale of condominium projects in Port City.

Commission officials said nine land plots valued at US$1.12 billion had been leased, while planning was under way to lease another six plots valued at US$1 billion.

Land leases

The Commission was also preparing to bring four government-owned plots to market, representing approximately one-seventh of the total land allocation.

Officials said only plots belonging to CHEC Port City Colombo (Pvt) Ltd had been leased so far.

Officials said the leases were for 99 years, with an average value of US$3,000 per square metre, and that the Commission had received Rs. 398 million to date, equivalent to 1% of total lease payments.

Investor safeguards

The committee examined mechanisms to identify the beneficial owners of companies investing in Port City, ensure transparency in foreign investments, and prevent money laundering and terrorism financing.

Members questioned the protection of pre-sale deposits paid by condominium and residential property buyers, focusing on the escrow account mechanism intended to keep foreign investors’ funds secure and ensure they were used exclusively for the relevant projects.

The committee also discussed how much foreign investment Port City had actually received, whether approved businesses were operational, and whether they had created the anticipated employment opportunities.