Colombo Port City now attracts investors for duty free retail trade
By: Staff Writer
Colombo (LNW): Colombo Port City is set to attract investors by offering incentives in accordance with stipulated regulations for duty-free retail trades or operating duty-free shopping malls within the stipulated economic zone area.
One World Duty Free (ODF), a Singapore-based omnichannel retailer, has collaborated with Port City Colombo to open Sri Lanka’s first downtown duty-free store.
The two companies say their partnership will bring to life their shared vision, creating a framework for ODF to develop Port City Colombo into a preeminent global duty-free retail destination.
A Gazette notification has been issued outlining the requirements for investors interested in carrying out duty-free retail trades or operating duty-free shopping malls within the Colombo Port City.
The Gazette has been issued by President Ranil Wickremesinghe in his capacity as the Minister of investment Promotion.
According to the notification, investors must invest a minimum of USD 5 million to run duty-free retail businesses. In addition, the promoter must have global experience in duty-free trade operations to be considered eligible.
On the other hand, investors must invest a minimum of USD 7 million to run duty-free shopping malls.
This notification is expected to boost investors’ interest in the Colombo Port City, which is becoming a hub for trade and commerce in the region.
The initiative will not only create new job opportunities but also increase the inflow of foreign investments to Sri Lanka
Sri Lanka passport holders returning from abroad and resident diplomats, would be allowed to buy up to 5000 US dollars of goods at a duty free mall in the China-backed Colombo Port City according to regulations issued by its governing authority.
Sri Lanka passport holders would be would be allowed to buy one laptop, tablet, desktop and two cameras a year, according to rules issued by the Colombo Port City Commission. The allowance would be independent of any other allowance at airports.
Other goods include 36 pieces of apparel, 10 kilograms of confectionery, two bottles of perfume and 5 units of make up products.
Tourists would have no a value limit but would be subject to a volume limit per visit. They could however purchase more to be picked up at the airport.
Duty-Free goods cannot be re-sold or exchanged by the permitted customer in Sri Lanka. Its sole purpose is for self-consumption and use among the family members.
Sri Lankans travelling abroad could also buy goods outside of the limit to be picked up at the airport.
The duty free outlets could also sell unlimited quantities online to overseas customers.The Colombo Port City would be a dollarized (multiple currency) special economic zone.
Creating a historic economic landmark, South Asia’s first Downtown Duty-Free (DF) Mall, now being constructed at the Colombo Port City will be opened soon
The Downtown Duty-Free will offer duty free shopping to tourists as well as Sri Lankans and expatriates returning from overseas giving them more choices of shopping.