Colombo Port City

Colombo Port City

Part of: GS Prelims and GS – II – International relations

In news

• A Chinese-funded tax-free enclave in Sri Lanka recently cleared the final legal hurdle as its Supreme Court gave it a go ahead.

Key takeaways

• It is named the “Colombo Port City”.
• It is the largest single foreign investment by China in Sri Lanka among the other massive infrastructure projects.
• The Port City will attract billions of dollars for trade, banking and offshore services similar to what is available in Dubai and Singapore.
• The Port City will be administered by a commission with various powers to fast track investment approvals. 
• All transactions within the Port City will be denominated in foreign currency and all salaries earned by any worker will be tax-exempt.