China Duty Free operations in Sri Lanka Port City planned in June: Minister

A duty free shopping complex by China Duty Free in the Colombo Port City is expected to get the go ahead in June, State Minister for Investment Promotion Dilum Amunugama said.

“Port City has signed agreements with China Duty Free,” Minister Amunugama told reporters in Colombo.

“Construction is taking place.”

A cabinet paper relating to its operations has been submitted.

If the approval is received before June 14, operations will begin on that date, Minister Amunugama said.

Several businesses have already started through the Colombo Port City, pending the construction of its buildings under its regulations.

Approved businesses are expected to use only foreign currencies in the area.

Inside the Port City, Sri Lanka’s bank cannot destroy the future value of money (rupees), create forex shortages or social unrest by printing money to cut rates through aggressive open market operations or unrestrained standing facilities.

Colombo Port City is a multiple currency area free of inflationist ‘macro-economic’ policy from a money monopoly and its monetary stability will be externally anchored though currency competition.

Products form multiple central banks including the Fed (US dollar), European Central Bank (Euro) and Peoples Bank of China (Yuan) are expected to compete to gain acceptance from its businesses and workers without a coercive legal tender monopoly that compels an inflating currency to be used.

Typically in dollarized areas (like Panama) banks will have arrangements with their holding companies or other US banks for temporary liquidity facilities, leading to strong market regulation as they would not lend to banks which are not well -managed, unlike unrestrained standing facilities.

In some countries with chronic currency deprecation, balance of payments deficits, outmigration by people who see no future for their children in their own country, there is no penalty rate for standing facilities, no counterparty limits and intra-day liquidity has zero interest rates.