A Deep Dive into Port City Colombo

Port City Colombo is a purpose-built Special Economic Zone (SEZ) in Sri Lanka, established under the Colombo Port City Economic Commission Act No. 11 of 2021. Backed by the Government of Sri Lanka and strategic investment from China Harbour Engineering Company, it’s positioned to become South Asia’s most advanced service-oriented hub.

Located adjacent to Colombo’s central business district, Port City offers global investors a controlled, investor-friendly environment with high-end infrastructure, financial incentives, and legal clarity.

Note: Information is subject to change. For the latest updates, follow us on our social media. You’ll find the link at the end of this article.

Key Benefits for Investors

1. Strategic Location

• Sits along major global shipping routes.

• Offers access to over 3 billion consumers in South Asia, ASEAN, and the Middle East.

• Positioned to become a regional financial and logistics hub.

2. Attractive Tax Regime

Businesses classified as Primary Businesses of Strategic Importance (PBSI) benefit from:

• 25-year corporate income tax exemption.

• 50% tax reduction for the next 10 years after the exemption period.

• Full exemption from VAT, dividend tax, withholding tax, customs duty, and other indirect taxes.

• Tax-free dividend repatriation and capital gains.

Other authorised businesses may qualify for varying incentives based on business category and size of investment.

Regulatory Framework

• Governed by the Colombo Port City Economic Commission.

• Operates under a simplified, transparent legal system with fast-track dispute resolution.

• No foreign ownership restrictions—100% foreign ownership allowed once you register as an Authorised Person with the Commission.

• All transactions in foreign currency.

Visa & Residency

Port City offers streamlined, investment-based residency options:

• Visas are renewable.

• Investors and senior staff can live and work in Sri Lanka under these terms.

Minimum Investment Requirements

• Commercial Land Plot: Starting from USD 100 million.

• Marina or Social Infrastructure Plot: Minimum USD 25 million.

• Investments must align with designated development zones within Port City.

Target Sectors

The Port City Commission prioritises investment in:

• Financial Services

• IT and Digital Services

• Professional Services (Legal, Accounting, Consulting)

• Logistics and Maritime

• Tourism and Hospitality

• Education and Healthcare

Only businesses in approved sectors can qualify for full incentive packages.

Opportunities at a Glance

Things to Keep in Mind

• All investments must go through Commission approval.

• Tax holidays apply only to authorised categories.

• Minimum investment thresholds are high—not suited for small-scale investors.

• Disputes are resolved under international arbitration frameworks if required.

Port City Colombo is not just another development project. It’s an SEZ that’s been structured from the ground up for long-term regional relevance. If you’re an international business looking to enter South Asia, this is the most future-proofed gateway available right now.