Port City Colombo: Powering Sri Lanka's investment momentum

As Sri Lanka marks its 78th Independence Day, it’s entering a new phase of economic transformation — one defined not just by tourism recovery, but by a deliberate shift towards becoming a regional investment and services hub. At the centre of this evolution is Port City Colombo, a purpose-built Special Economic Zone (SEZ) designed to attract global capital, multinational enterprises and long-term investors seeking access to South Asia’s next growth cycle.

Sri Lanka’s economic rebound continues to gain momentum, with GDP growth of 5 per cent in 2024 and 5.4 per cent year-on-year expansion in Q3 2025. Tourism delivered a record year in 2025, and this renewed confidence is now feeding into broader investment-led growth.

As an extension to Colombo’s Central Business District, Port City Colombo represents a new urban and commercial ecosystem built to global standards. Designed along the lines of successful integrated city models seen in the Gulf and Southeast Asia, the development brings together financial services, corporate headquarters, Grade-A office space, hospitality, luxury residential living, waterfront retail and marina-led leisure assets within a single master-planned district.

Drawing investments

For international investors, the value proposition extends beyond investment in real estate. Port City Colombo operates under a dedicated regulatory framework that enables 100 per cent foreign ownership, long term tax incentives, no cap on foreign employment, transactions and remuneration in 16 designated foreign currencies, and preferential visas for up to 10 years (also eligible for spouse and children).

A single-window investment facilitator and regulatory authority, the Colombo Port City Economic Commission, allows investors to move from project approval to implementation without navigating multiple ministries or overlapping agencies. The framework is also compatible with regional investment structures, including Islamic finance, making it particularly relevant for the Middle Eastern institutions and family offices.

Crucially, this framework is not aspirational. It’s already operational — with enabling legislation in force, regulations gazetted, and institutional capacity in place to fast-track investment approvals, licensing and project onboarding. For Middle Eastern investors accustomed to world-class regulatory environments, the city offers comparable institutional readiness, allowing projects to move directly into vertical development under a purpose-built regime designed to protect capital and accelerate execution.

Strategic location

Geographically, Colombo’s location strengthens its appeal. Major GCC hubs are within a four- to five-hour flight, enabling seamless regional connectivity while offering cost efficiencies compared to more saturated markets. This proximity positions Port City Colombo as a practical hub for financial, professional and IT/ITES services, and regional headquarters seeking expansion into South Asia.

Sustainability sits at the core of the development strategy. Branded as Sri Lanka’s first Green and Blue SEZ, Port City Colombo incentivises environmentally responsible development, including bonus buildable area for projects achieving top-tier green certifications.

Reflecting strengthening investor confidence, Port City Colombo recently also secured an $300 million in foreign direct investment for its Phase II development.

As Sri Lanka enters its next chapter of growth, Port City Colombo offers Middle Eastern investors an opportunity to secure an early foothold in a purpose-built international business and lifestyle hub. For those seeking diversification, regional access and long-term value creation, the gateway to South Asia is no longer on the horizon — it is open today.

To learn more about the investment opportunities at Port City Colombo, as well as for information on single window investment facilitation and regulatory matters, please visit www.portcitycolombo.gov.lk.