Port City Colombo: Govt targets $ 4.1 billion investments, says Deputy Minister
The Morning: The Colombo Port City has secured $ 2.1 billion in confirmed investments, while the Government is targeting a further $ 4.1 billion investments over the next five years, Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe stated.
The investment target would be supported by several major development projects currently being implemented within the Port City. These include two large-scale residential projects, a modern hotel and a convention centre.
In a statement posted on social media, the Deputy Minister said that the Colombo Port City was presented as a major investment opportunity at an Australian investment summit held recently. He also stated that several of the investments already confirmed involve leading international investors.
The Government has taken steps to revise the tax incentives available within the Port City, with the aim of bringing them in line with international standards while maintaining the development’s attractiveness to investors.
Under the revised system, primary investments will be eligible for tax concessions ranging from 15 to 23 years, while secondary investments will receive a reduced tax rate for a period of four years.
The investments confirmed for the Port City are in addition to investments secured through the Sri Lanka Board of Investment (BOI).
The Deputy Minister also stressed that tax incentives alone are not sufficient to attract international investors. Economic stability, investor confidence, connectivity and a clear economic vision are also essential factors in creating an attractive investment environment. The Government is currently working to establish such an environment while pursuing its target of attracting $ 4.1 billion in investments to the Port City over the next five years.
OSL take:
Colombo Port City is positioning itself to attract a fresh wave of foreign businesses and investment as Sri Lanka’s economy moves from crisis management towards a broader phase of recovery and expansion. The development has already secured around $2.1 billion in confirmed investments, while the Sri Lankan Government is targeting a further $4.1 billion over the next five years. Several major projects, including residential developments, a hotel and a convention centre, are expected to strengthen the Port City’s commercial appeal. Deputy Minister Abeysinghe has said the Port City was promoted as a major business/investment opportunity at an Australian investment summit recently, highlighting the growing effort to attract international capital and businesses. For foreign businesses/investors, the Port City offers an opportunity to establish a presence in Colombo as Sri Lanka seeks to expand beyond its traditional sectors and develop new areas such as financial services, tourism, real estate, technology and business services. The Government is also reviewing the tax incentives offered within the Port City, seeking to bring them closer to international standards while retaining sufficient advantages to compete with other regional investment destinations. With macroeconomic stability improving, foreign exchange reserves being rebuilt and exports, tourism and investment recovering, the Port City is increasingly being positioned not simply as a real estate project, but as a potential hub for international business and capital entering Sri Lanka and the wider South Asian market.
| Article Code : | VBS/AT/20260831Z_1 |