Colombo—Three international banks are currently negotiating to set up offshore operations in Sri Lanka’s Colombo Port City, with new regulations poised to boost the economic zone’s appeal to global investors.

According to CHEC Port City Colombo (Pvt) Ltd., the discussions include seven local banks and come on the heels of recent legislative approvals that provide enhanced incentives for offshore banking entities. The company’s press release detailed that Sri Lanka’s parliament has passed two gazetted regulations aimed at attracting foreign investment by offering significant fiscal and non-fiscal benefits. These benefits include tax exemptions for more than 25 years, full repatriation of capital and profits, and the possibility of 100 percent foreign ownership.

A July statement from the Department of Government Information highlighted that international accounting firms have projected that the Port City could attract up to $15 billion in investments due to these advantageous conditions.