New regulations offer incentives for Port City investments
The Morning: The Government of Sri Lanka (GoSL) has issued new regulations offering a wide range of exemptions and incentives for major investors in the Colombo Port City, as part of efforts to transform the project into a regional financial and commercial hub.
The announcement, published in Gazette No. 2454/62 on 20 September, was made under the Colombo Port City Economic Commission Act, No. 11 of 2021, and signed by President Anura Kumara Dissanayake in his capacity as Minister of Finance, Planning and Economic Development.
The new rules, titled the Colombo Port City (Guidelines on the Grant of Exemptions or Incentives to Businesses of Strategic Importance) Regulations, No. 1 of 2025, set out the framework for identifying and granting benefits to investors categorised as Businesses of Strategic Importance.
Businesses investing in land leasing and development within the Port City will be designated as Primary Businesses of Strategic Importance if they meet one of the following criteria:
· Category A: Minimum investment of $ 100 million per land plot (or proportionate investment in subdivided plots) and creation of at least 300 jobs.
· Category B: Minimum investment of $ 500 million per plot with at least 300 jobs.
· Category C: Minimum investment of $ 1 billion per plot with at least 300 jobs.
· Category D: Minimum investment of $ 25 million in Marina or Social Infrastructure developments, with the creation of at least 100 jobs.
Qualified businesses under Categories A–D will benefit from:
· Exemptions from key enactments during the project implementation phase, including the Customs Ordinance, Ports and Airports Development Levy Act, and Sri Lanka Export Development Act.
· Exemption of all profits from corporate income tax for a defined period after implementation.
· Further relief from specific laws such as the Betting and Gaming Levy Act, Entertainment Tax Ordinance, Foreign Exchange Act, and Termination of Employment of Workmen Act during the project’s implementation period.
The regulations also provide a framework for identifying Secondary Businesses of Strategic Importance, which will be eligible for a reduced set of exemptions and incentives.
Officials noted that these measures aim to attract global-scale investors to Colombo Port City, fast-tracking development projects while creating new employment opportunities.
By outlining clear investment thresholds and tax incentives, the government expects to strengthen investor confidence and establish the Port City as a competitive destination for international finance, trade, and urban development.
OSL take:
The Port City Colombo project is aimed at taking Sri Lanka to the next level of development. There’s much interest shown in the Port City Colombo by many foreign businesses/investors. With Sri Lanka figuring prominently in China’s Belt and Road Initiative (BRI) and the country’s strategic positioning in the Indian Ocean as well as the strong trade ties enjoyed by the country with many foreign countries, Sri Lanka presents the ideal business destination in the South Asian region. The country is on the path towards becoming a hub in the South Asian region and the ongoing economic expansion has helped push Sri Lanka closer to achieving this target. It is in such a backdrop that Sri Lankan authorities have taken steps to introduce more incentives to foreign businesses/investors to explore the many opportunities in the Colombo Port City. Given the growth and business potential in Sri Lanka, entering the country’s economy would guarantee lucrative business ventures as well as quick returns on investment (ROIs).
| Article Code : | VBS/AT/20250926/Z_3 |