To ensure ease of doing business the power of the proposed commission to act as a one-stop-shop to deal with investors was emphasized. The emphasis was placed by legal counsel at Sri Lankan Investment Bank Capital Alliance.
Legal Counsel Capital Alliance Ranila Wijesundara said, “They are going to set up a special commission to set up and regulate operations in the Port City area. Given that the ease of doing business is one of the main objectives it is important that the commission act as a one-stop-shop for investment. It is a single-window facilitator.
 Legal Counsel,
Ranila Wijesundera
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Wijesundara was speaking on May 25 on a Capital Alliance organized webinar on the Port City law.
“All the investor has to deal with is the commission. The commission goes and deals with other regulatory authorities.” This framework is similar to the operations of the Board of Investment in Sri Lanka. “The success of this will largely depend on the efficacy of the commission,” Wijesundera said.
The commission will be appointed by the President. Commission members will have 3-year terms with the right to re-election. Day to day operations will be handled by a Director-General. The appointment of the Director-General is vested with the President. The land that was reclaimed by means of legal title is vested with the commission. The commission will act as a lessor for anyone entering into a lease or buying land within the Port City.
Wijesundera said, “While nationality is not mentioned in the act the criteria sets out that they need expertise in areas like Information Technology or Engineering.”
The Port City will bring about a new International Dispute Resolution Center. The centre will not be limited to arbitration but also offer services like mediation, reconciliation, and adjudication. Wijesundera said, “There are various types of dispute resolution mechanisms which will be available to investors. The rules the centre sets up will be in line with international standards. The act is very efficient.”
Enforcement of rulings by the Dispute Resolution Centre will be done by the local courts. Delays will be prevented by the establishment of a fast-track enforcement mechanism. Enforcement in the local courts will happen in line with the current arbitration act of 1995. It is expected that cases will have to be taken up on a day to day basis.
Wijesundera said, “Within a span of two weeks your arbitration would be enforced.”
Anybody can invest in Port City so long as they get a license from the commission. Any currency currently in use in Sri Lanka can be used in Port City. Sri Lankan companies can invest in Port City but they need to source their investment from funds originating from outside Sri Lanka.
As the Port City is still being built, companies given the approval to operate within Port City will have five years from the enactment of the act to establish physical operations within the Port City zone. The commission will be given the power to provide licenses to new gaming ventures within Port City.
All Sri Lankan laws except those that are specifically exempt from the act will be applicable. Anti-money laundering laws of the country will apply. Regulatory mechanisms currently in the rest of the country will apply in Port City. Wijesundera said, “The relevant regulatory authority has the discretion to accept or decline the license to operate issued by the commission.”
Parliament will have oversight on any tax exemptions awarded.
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