Sri Lanka’s China-backed tax haven clears final hurdle

Top court rejects pleas challenging Colombo Port City

A Chinese-funded tax-free enclave billed as Sri Lanka’s answer to Dubai and Singapore cleared the final legal hurdle on Tuesday as the Supreme Court in Colombo ruled it could go ahead with only minor tweaks. The largest single foreign investment in Sri Lanka is one of several massive Asian infrastructure projects funded by China as Beijing increases its regional footprint. Sri Lanka’s top court rejected 19 petitions challenging the “Colombo Port City Economic Commission” Bill and approved the $1.4-billion project subject to minor amendments which the government immediately said it accepted. Project officials have said they hope the brand new “Port City”, an area of reclaimed land, will attract billions of dollars for trade, banking and offshore services similar to what is available in Dubai and Singapore, two of its potential competitors.