Sri Lanka to appoint experts to draw ‘financial city’ law

ECONOMYNEX – Sri Lanka’s cabinet of ministers had given the go-ahead to appoint two experts to draw up a legal and business framework for a proposed ‘financial city’ in Colombo, Minister Rajitha Senaratne said.

An international expert will be appointed to draw a business framework and a retired attorney general will head the legal work, he said.

The ‘financial city’ will be cited at Colombo’s World Trade Centre or a suitable location.

It will be later shifted to the China Port City to be reclaimed out of the sea.

Prime Minister Ranil Wickremesinghe had said the Colombo International Financial Centre will be between Dubai and Singapore.

However, unlike Dubai and Singapore, Sri Lanka has a soft-pegged central bank that prints money and regularly pushes the country into balance of payments crises.

The UAE’s central bank has a hard-peg lookalike which closely mimics US policy rates (no active policy rate), Singapore has a modified currency board with no active policy rate. Hong Kong, another Asian financial centre, has an orthodox currency board, also with no active policy rate. (Colombo/Aug10/2016)

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