SEZ Port City Colombo woos tech cos to derisk India ops
Port City Colombo is attracting technology companies from India seeking to diversify risks. This special economic zone offers a lower cost of doing business compared to Singapore. Indian firms can leverage Port City Colombo for access to the RCEP trading bloc. The US dollar and Indian rupee are designated currencies for transactions within the zone. Substantive conversations are underway with…
Port City Colombo, a multi-services special economic zone backed by China, is actively approaching US and European technology firms operating in India to mitigate risks, according to deputy managing director Thulci Aluwihare. The SEZ positions itself as an alternative to Singapore and Dubai, offering Indian companies access to the China-led Regional Comprehensive Economic Partnership (RCEP).
India and Sri Lanka have a free trade agreement, and Sri Lanka is in the process of joining RCEP. Aluwihare explained to ET that Indian companies can leverage Port City Colombo as a bridge between the RCEP trading blocs. The cost of doing business at Port City Colombo is estimated to be a quarter of the costs in Singapore and Dubai, with similar trends in living expenses, Aluwihare added.
With India being the project's largest target market due to its proximity and capability-center ecosystem, Aluwihare highlighted a favorable currency regime within Port City Colombo, where the US dollar is the primary transaction currency, and the Indian rupee is also legal tender. The SEZ is in active discussions with major technology companies looking to diversify risks and ensure business continuity, according to Aluwihare.
When asked about competition from Mauritius and other tax-friendly jurisdictions, Aluwihare clarified that their goal is not to become a tax haven.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
