Sri Lanka pitches tax holidays to attract UAE investors to Colombo Port City
Gulf News: Sri Lanka is offering tax holidays of up to 15 years and positioning Colombo Port City as a new financial and trade hub as it seeks to attract UAE investors amid renewed political and economic stability, Ministry of Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe said.
Abeysinghe told Gulf News that the Government is streamlining investment approvals and incentives to make Sri Lanka a predictable and competitive destination for foreign capital.
“We have two broad investment opportunities – the Colombo Port City, which is being developed as a regional financial hub, and projects under the Board of Investment,” he said on the sidelines of the Invest Sri Lanka Investor Forum in Dubai.
“Some investments qualify for tax holidays of up to 15 years, along with other incentives. With the new Investment Promotion Act, all of this will be streamlined and made clearer.”
Abeysinghe noted that Sri Lanka’s political neutrality and expanding trade access make it attractive for Middle Eastern businesses looking to establish a regional base.
“Sri Lanka can trade and work with any country. We engage with China, the US, India and the Middle East,” he said, noting that the country’s neutral foreign policy gives investors access to global trade and investment routes.
Abeysinghe pointed out that Sri Lanka already enjoys preferential access to European markets and is negotiating further trade agreements.
The Deputy Minister highlighted agriculture, tourism, maritime logistics and renewable energy as priority sectors for foreign investors.
“Agricultural transformation is a major opportunity, particularly in crops that are unique to Sri Lanka,” Abeysinghe said. “There is also strong potential in luxury tourism, especially for Middle Eastern travellers, as well as in ports and maritime investments connecting East-West trade routes.”
Renewable energy, including green hydrogen and long-term energy storage, was another focus area, he said.
On his first visit to Dubai, Abeysinghe outlined the Government’s ambition to draw lessons from Dubai’s economic transformation.
“The trajectory is clear. Stability is in place and reforms are under way,” he said. “We talk about Vietnam, South Korea and India’s turnaround. We talk about how Dubai came up, and next is going to be Sri Lanka.”
Abeysinghe acknowledged Sri Lanka lost growth opportunities over the past three decades due to delayed reforms, policy inconsistency and corruption, but said the situation has changed since 2022.
“Our economy is now stable and predictable. Key reforms are being implemented, policies are consistent, and the legal framework for investment is being strengthened,” Abeysinghe said.
Sri Lanka has exceeded its fiscal and macroeconomic targets for 2024 and 2025, while land policy reforms and the digitisation of Government services through GovPay are removing long-standing investment bottlenecks, he added.
“This is no longer a gamble. Investors can be part of Sri Lanka’s growth journey as long-term stakeholders,” Abeysinghe added.
OSL take:
With the country’s economy on a growth path, Sri Lanka is focused on attracting more foreign businesses/investors to the country. The expanding economic sectors and the resultant expansion of business/investment opportunities in the country, presents a host of new business/investment opportunities in Sri Lanka for foreign businesses/investors on the lookout for lucrative ventures in the South Asian region and Sri Lanka specifically. While the country’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed with many foreign countries have helped boost the country’s image as an emerging business destination in the region. It is in such a backdrop that the Sri Lankan authorities have pitched tax holidays for UAE investors to Colombo Port City and similar tax holidays could be offered to other foreign businesses/investors. Given the growth and business potential in Sri Lanka and the emergence of the Colombo Port City as the project that would take Sri Lanka to the next level of development, foreign businesses/investors could confidently explore the expanding business/investment opportunities in Sri Lanka, especially in the Colombo Port City project.
| Article Code : | VBS/AT/20260205/Z_1 |