Colombo, May 20 (ECONOMYNEXT): Sri Lanka’s has passed a law to set up a China-backed dollarized special economic zone, which is expected to fast-track investments and be protected against currency deprecation.
148 members of a 225 assembly voted for the bill and 59 voting against. The opposition Samagi Jana Balawegaya, the Janatha Vimukthi Peramuna and the Tamil National Alliance votes against it. The ruling Sri Lanka Podujana Peramuna voted for the bill.
The 148 votes for the Port City Commission law fell a slightly short of the 150 two thirds majority.
Sri Lanka’s Supreme Court earlier ruled that 26 provisions were contrary to the constitution and that it would have to go for a referendum if the amendments it suggested were not carried out.
The government carried out the court suggested amendments and rejected the opposition’s suggestions.
Sri Lanka’s State Minister for Money and Capital Market says the Port City would bring 15 billion dollars of investments and add 12 billion dollars each year to the gross domestic product of the country.
It would also be a test-bed for new ways of running government process and improve the ease of doing business.