In what trade unions have hailed as a major victory for workers’ rights, the government has withdrawn four gazette notifications that had granted tax concessions to investors in the Colombo Port City, following widespread criticism that the move undermined labour protections.
The gazette notifications — 2445/2, 2445/3, 2445/4, and 2445/5 — were issued on 14 July by the President, offering relief to four major investors: Ceylon Real Estate Holdings (a Browns Company affiliate), Clothespin Management and Development, IFC Colombo, and ICC Port City, which were designated as strategically important primary ventures.
However, trade unions (TUs) argued that the concessions came at the cost of workers’ rights, effectively weakening labour safeguards and violating the Termination of Employment Act.
The FTZ Employees Union, Lanka Trade Unions Federation (affiliated with the Communist Party), and the Lanka Estate Services Union filed a case before the Court of Appeal challenging the legality of the gazettes.
When the case was taken up on 27 October, the Attorney General’s Department informed the court that the government had decided to recall the four gazettes.
Subsequently, the Court of Appeal ordered the Labour Commissioner to annul the notifications and ensure continued compliance with existing labour laws.
Trade union leaders described the withdrawal as a rare and significant win against what they called anti-worker policies by the President and the NPP-led regime, accusing the government of attempting to create “two laws within a single country.”
TU representatives said the decision underscored the power of collective action and reaffirmed that workers’ rights must not be sacrificed in the name of investment incentives.
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