Sri Lanka Targets US$4.1 Billion in New Port City Colombo Investments

Sri Lanka is targeting a further US$4.1 billion in investments in Port City Colombo over the next five years, Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe said.

In a social media statement, Abeysinghe said US$2.1 billion in investments had already been confirmed for the development, as the government seeks to establish Port City Colombo as a major regional investment destination.

He said Port City Colombo was presented as a key investment opportunity at an Australian investment summit held last week.

Several international companies have already established investments or operations linked to the project. These include Horizon Group USA, which is developing a global shared services centre; Ansell, for global operations; IGT1, for business process outsourcing and business process management services; KPMG, for offshore professional services; and GAC Services, for logistics back-office operations.

Abeysinghe also said the government had revised what it considered excessive tax concessions previously offered to Port City investors, with the aim of aligning the incentive framework more closely with international standards while maintaining the zone’s competitiveness.

Under the revised framework, primary Businesses of Strategic Importance can qualify for corporate income tax holidays based on investment criteria, while secondary businesses are eligible for a concessionary corporate income tax rate of 7.5% for four years. Introduced in 2025, the revised framework provides tax holidays of up to 15 years for qualifying primary businesses.

The Deputy Minister said tax incentives alone were not the main factors attracting international investors to Port City Colombo.

He highlighted high-speed internet connectivity, Sri Lanka’s strategic location and access to international markets, as well as a lower cost of living compared with regional hubs such as Dubai and Singapore.

Two major residential developments, three mixed-use projects, a hotel and a convention centre are also currently under development at Port City Colombo, he said. 

The Colombo Port City Economic Commission has separately identified the zone’s strategic location, investor protection framework and fiscal and non-fiscal incentives as key features designed to attract foreign investment.

Abeysinghe stressed that investments secured through Port City Colombo are additional to foreign investments entering Sri Lanka through the Board of Investment.

With Sri Lanka moving towards greater economic stability and stronger growth, Abeysinghe said the government remains confident that its investment targets for Port City Colombo can be achieved.