$1.2 billion in projects to start in Sri Lanka’s Port City, $732 million awaiting nod
EconomyNext: Investments worth $ 1.2 billion already approved are expected to start construction in 2025 and there are $ 732 million of other investments awaiting approval, Deputy Minister of Industries, Chathuranga Abeysinghe said.
The Port City had a pipeline of investments amounting to $ 3.9 billion and $ 1.2 billion of projects had already been approved, Abeysinghe told parliament.
About $ 732 million in investment applications were awaiting approvals, he said.
The Parliament passed amendments to the Port City Law, which reduced tax holidays to below 15 years, based on the level of investment.
Officials of the Colombo Port City Commission told the parliament’s Committee on Public Finance (COPF) that it was in discussions with over 140 investors under the previous tax breaks which gave 25-year tax holidays.
When reduced taxes were proposed 84 had responded saying they will go ahead, six had said they will not, Chief Operating Officer Revan Wickramasuriya told the COPF.
Around 70 had not responded.
Sri Lanka had offered 25-year tax holidays for strategic investors in 2023, during an economic crisis but they were reduced to 15 to 4 years based on levels of investment in an amendment to the Port City Law.
Recent stability has led to better investment sentiment; Port City Commission officials told the COPF.
In 2026, four investors, including in a residential project, a mixed development, were expected to start construction, he said.
OSL take:
Sri Lanka’s Port City project in Colombo is aimed at taking the country to the next level of development as the country postures to become a regional hub. The country’s strategic positioning in the Indian Ocean, the many trade agreements as well as trade ties enjoyed with many foreign countries and the improving ease of doing business environment in the country, have all helped position Sri Lanka as an emerging business destination in the South Asian region. With the country’s economy showing its growth through resilience and strength through the years amidst many internal and external economic challenges, Sri Lanka continues to attract many foreign businesses/investors to the country while foreign countries like China have placed Sri Lanka prominently in their external economic expansion programmes like the Belt and Road Initiative (BRI). All these factors therefore indicate that Sri Lanka is the ideal business/investment destination for foreign businesses/investors on the lookout for the next big business venture. While exploring the many business/investment opportunities in Sri Lanka, these foreign businesses/investors could explore the opportunities of setting up businesses in the Colombo Port City, which offers special incentives to investors as well as present a dedicated financial zone ideal for foreign business ventures. Given Sri Lanka’s ongoing economic expansion and the target of achieving regional hub status, foreign businesses could confidently set up bases in Sri Lanka as it would enable such entities to engage with other countries in the region using the preferential treatment enjoyed by Sri Lanka with them.
| Article Code : | VBS/AT/20260112/Z_3 |