📈 CoPF Approves New Port City Duty-Free Rules & Labor Law Revisions

The Committee on Public Finance (CoPF) has cleared significant regulatory changes for the Colombo Port City aimed at boosting commercial activity and refining labor exemptions. • Retail & Tourism: New regulations relax restrictions on Sri Lankan citizens purchasing from Port City duty-free outlets. This shift addresses low foreign tourist inflows—currently only 1.5% of total visitors—to improve the commercial viability of the retail zone. • Labor Market Flexibility: CoPF approved amendments to the Termination of Employment of Workmen Act (TEWA) following a Court of Appeal challenge. The government has narrowed previous exemptions, ensuring most legal protections remain while granting strategic businesses relief from specific procedural constraints (Sections 2, 11, and 12). • Strategic Expansion: Authorities are working to extend similar labor law reliefs to "Secondary Businesses of Strategic Importance" to enhance investment appeal and operational agility. • Market Oversight: The Colombo Port City Economic Commission is actively monitoring the zone to prevent the leakage of duty-free goods into the domestic market through unauthorized channels. _Source: Based on Gazette notifications and Parliamentary statements (Provisional)_