3. Replacement of section 35 of the principal enactment

Section 35 of the principal enactment is hereby repealed and the following section is substituted therefor: -

35. (1) A person to whom a registration, licence, authorisation or other approval has been issued or granted prior to the date of commencement of this section by the

Commission to engage in business in and from the Area of Authority of the Colombo Port City, may employ any person, whether a resident or a non-resident, and such employee shall be remunerated in a designated foreign currency, other than in Sri Lanka Rupees.

For the purposes of subsection (1), for a period of three years commencing from the month immediately following the month in which this section comes into operation-

any employment income of a resident employee employed by a person referred to in subsection (1) shall be exempt from income tax and shall be deemed to be a permissible credit to a personal foreign currency account of such resident employee; and

any employment income of a non-resident employee employed by a person referred to in subsection (1)

Any employment income of a resident employee and a non-resident employee of a person to whom a registration, licence, authorisation or other approval has been issued or granted by the Commission on or after the date on which this section comes into operation shall be liable to income tax.”.