Dollar salaries, no income tax
Colombo International Financial Centre:
The government aims to offer a wide ranging product mix in the
centre, including banking, capital market, wealth management, global
processing, alternative financing, insurance and professional services.
“The shipping sector will also be encouraged,” Rajudin said, in a
presentation at the Colombo International Maritime Conference, which
described how the CIFC will operate, its structural and legal changes in
the finance system for an International Finance Centre.
“There will be no personal tax on income originating from this zone,”
he said. “We are planning to have system where all employees, including
Sri Lankans earn in US dollars – so that our expats can come back.”
Outlining the key features of the CIFC, Rajudin said it will be an
onshore and offshore financial free zone and a tax-free zone with
initially a 50-year tax-free period with land ownership through 99 year
“It will be a multi-currency one – we will encourage all currencies
into this zone.” The CIFC’s administrative infrastructure will comprise
three sectors - a regulatory authority, an investment authority and a
The regulatory authority will regulate financial services while the
investment authority – known as the Financial City Corporation – will
handle the operations and management of financial city, its development
and administer its laws and regulations.
The special court will handle civil and commercial cases and also
have an employment division and an appeal court.
“That means the entire financial centre will be managed through a
separate court,” Rajudin said. “Laws will be enacted to protect
investors, with laws to administer the infrastructure in phase 1 and
supporting laws in phase 2. Parties will be given a choice of selecting
the law – if they are not in agreement we will encourage them to adopt