Port City banking rules tightens licence access: EY

Offshore banking licences limited to foreign-incorporated banks under amended law

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THE Colombo Port City offshore banking framework has been materially tightened under recent legislative changes, with access to offshore banking licences now restricted to foreign-incorporated banks, according to a new analysis by Ernst & Young Sri Lanka.

In a tax alert on the Colombo Port City Economic Commission (Amendment) Act, No. 1 of 2026, EY said the amendment introduces significant changes to Part VIII of the Port City Act, which governs offshore banking business carried out in and from the Port City area.

The Port City Amendment Act, certified on 20 January 2026, removes the ability for locally licensed banks to apply for an offshore banking licence under Part VIII.