Srilanka, under China’s assistance, is working towards making the port city Colombo a financial hub. The port city of Colombo, a special economic zone is an extension of the belt and road initiative (BRI). This financial hub is will compete with India’s GIFT City on technical and operative grounds. Gujarat International Finance Tec-City (GIFT City) is a smart city and international financial services centre, situated in India.
In a report by Economic times, 28 entities have recently been approved GIFT City. In order to upscale the work at India’s Financial hub between Ahmedabad and Gandhi Nagar
Tax Incentives for Colombo port city
Similarly, the Economic Times has reported that Sri Lanka has been recently given tax incentives. International Finance Center (CIFC) is benefiting from the relief. The favours extended by china are surely an effort eliminating bottlenecks in the system. Also, the fiscal stimulus will likely accelerate the operating capacity of the Special economic zone.
Furthermore, Srilanka definitely sees an opportunity in the devised plan. Thulci Aluvihare, head of the strategy and business development, CHEC Port City Colombo, confirmed it to ET Magazine saying “Definitely there is an opportunity,” He further adds that the decisive factor here is “opportune adaptation” to realize the goals. “It depends on how fast we can adapt to suit the requirement of Hong Kong companies used to much-sophisticated commerce and trade looking to relocate,” Aluvihare said.
Re-elected government is likely to pass legislation
Additionally, to make sure that the process runs smooth, Srilanka plans to avoid running into speed bumps and ease the execution. Therefore, the re-elected government that takes charge after August 5 is likely to approve of the legislation. The legislation will b pertinent to the approval process for the project, the report mentioned.
Srilanka lease to the investors
Moreover, Thulci addressed the worry over investors reluctant about the Chinese involvement in the project. He dismissed the perception that the Chinese are saying that investors will be availing a Sri Lankan lease. So, the investors won’t have to worry over engaging with the Chinese. The success of port is in its ability to meet international standards. Sri Lankan’s are hoping for it to turn out positively. However, China assistance will make sure that operation is ale to meet international standards