Frequently Asked Questions

Port City Colombo (PCC) is a multi-service Special Economic Zone in Sri Lanka positioned as an extension of its Central Business District. PCC is one of the largest Private Public Partnerships and the largest Foreign Direct Investments in the country. The master-planned city encompasses high-quality business and lifestyle offerings to cultivate an unparalleled live-work-play environment.

Visit our About Us page for more information.

The Colombo Port City Economic Commission (CPCEC) is entrusted and authorised, by way of the Colombo Port City Economic Commission Act No. 11 of 2021, with the administration, regulation, and control of all matters connected to businesses and other operations. As the Single Window Investment Facilitator of Port City Colombo, CPCEC promotes the ease of doing business within the zone.

Colombo Port City Economic Commission Act No. 11, 2021. – https://www.parliament.lk/uploads/acts/gbills/english/6218.pdf

CHEC Port City Colombo (Private) Limited (the Project Company) is a Board of Investment-approved company, specifically created to make a Foreign Direct Investment in Port City Colombo and is a 100% owned subsidiary of the China Harbour Engineering Company Ltd. The parent company, Communications Construction Company Limited, is listed on the Shanghai and Hong Kong Stock Exchanges.

Learn more about CHEC – https://www.chec.bj.cn/pub/chec_pc/en/ | https://en.ccccltd.cn/

CHEC Port City Colombo (Private) Limited, through the China Harbour Engineering Company (CHEC), is part of China Communications Construction Company Limited (CCCC).
CCCC is listed on the Hong Kong and Shanghai Stock Exchanges and is a recognised world leader in port design and construction. In 2019, CCCC ranked 3rd on ENR Top International Contractor and in 2023, CCCC ranked 63rd in the Fortune Global 500.

CCCC has executed massive construction projects in Sri Lanka since 1998, including the Southern Highway, Outer Circular Highway, Hambantota Port, Mattala International Airport, Colombo South Container Terminal, and many other major infrastructure projects.

An AP of Port City Colombo is an individual or entity designated and granted the authority to conduct specific international business activities within the Colombo Port City Special Economic Zone.

PCC offers APs:
i. 0% personal income tax for employees
ii. Transactions and employee remuneration in 16 designated foreign currencies
iii. Preferential visas of 5-10 years (for spouses and children)
iv. 100% capital and profit repatriation
v. Unrestricted foreign employment or ownership
vi. Flexible labour laws
viii. Ease of doing business (supported by the Colombo Port City Economic Commission as the Single Window Investment Facilitator)
ix. Dedicated International Commercial Dispute Resolution Centre
x. Investment protection mechanisms through law and contracts

Additionally, APs registered as Businesses of Strategic Importance (BSIs) receive over 25 years of tax exemptions or incentives from corporate income tax, VAT, border tariffs, and dividend tax.

An AP may apply to the Colombo Port City Economic Commission for authorisation to do business in Sri Lanka with a citizen or a resident of Sri Lanka who is engaged in business in Sri Lanka outside PCC. This depends on the applicability of all written laws currently in force and regulations which may be made hereunder, in the national interest and in order to safeguard the interest of the domestic economy.

To qualify as an AP, an investor could either:

• Incorporate a company in Sri Lanka with the Registrar of Companies and then proceed to obtain offshore status as provided in the Colombo Port City Economic Commission Act No. 11 of 2021; or
• Register its company incorporated overseas as an offshore company under the Colombo Port City Economic Commission Act No. 11 of 2021. Accordingly, a licence will be issued by the Colombo Port City Economic Commission.

Colombo Port City Economic Commission Act No. 11, 2021.- https://www.parliament.lk/uploads/acts/gbills/english/6218.pdf

No, there is no minimum investment amount required to be eligible for AP status. Any entity that meets the qualifying criteria is eligible for both AP and Business of Strategic Importance status.

Learn the requirements for AP and BSI status – https://www.portcitycolombo.gov.lk/starting-a-business

Applicants can use our online application portal to register as an AP in Port City Colombo.

Visit our Online Application Portal – https://portal.portcitycolombo.gov.lk/customer/create

Companies that are not already operating in Sri Lanka may register as foreign businesses before applying to register as an AP. However, existing foreign entities can also register a new entity with the Registrar of Companies and then register that entity as an Offshore Business Unit before applying for AP status.

To obtain an AP licence from the CPCEC, applicants would need to provide a Certificate of Incorporation, certified copies of the biodata page of the passport, a document appointing the authorised signatory, a credible and viable business plan, and other documents.

View the AP application process for further information – https://www.portcitycolombo.gov.lk/application-process

The Colombo Port City Economic Commission (CPCEC) grants AP status as the Single Window Investment Facilitator of Port City Colombo.

Visit the CPCEC website. – https://www.portcitycolombo.gov.lk/application-process

The Colombo Port City Economic Commission (CPCEC) reviews the AP applications submitted at the end of each month and will contact the applicants afterwards. The CPCEC Public Register will also be updated accordingly.

View the CPCEC Public Register. – https://www.portcitycolombo.gov.lk/public-register

After registering as an AP, the commission shall produce a certified copy of a licence, certificate of registration and authorization, or other forms of approval.

APs should submit an application in writing to the Colombo Port City Economic Commission (CPCEC) to renew their licence thirty (30) days prior to its expiry.

Visit the CPCEC website – https://www.portcitycolombo.gov.lk/application-process

An AP who is unable to renew their licence will cease to be an AP and will be unable to engage in business within Port City Colombo. The Colombo Port City Economic Commission may not cancel the licence until three (3) months from the publication of the notice of expiry.

An AP licence will get cancelled in the event of:

• Failing to commence business at Port City Colombo within six (6) months from licence issuance.
• Ceasing to continue to conduct business within the permitted place(s) or area(s) where the AP no longer has a legal personality in terms of applicable law.
• Furnishing false, misleading, or inaccurate information or documents to the Colombo Port City Economic Commission (CPCEC).
• Breaching the terms and conditions of the licence as issued by the CPCEC.

BSIs are businesses identified by the Colombo Port City Economic Commission that qualify for exemptions or incentives within Port City Colombo. Only Authorised Persons can operate as BSIs and receive incentives. BSIs promote social, economic, and development goals, and are divided into two main investor categories; land development investments (Primary BSIs) and business set-up and investments (Secondary BSIs).

BSIs are eligible for corporate income tax exemptions and incentives for up to 35 years, VAT, border tariffs, dividend tax exemptions for 25 years, and more.

No, applicants do not need to submit a separate application in order to obtain BSI status. When submitting the online application for an Authorised Person (AP) in the business plan section, applicants should specify their requirement for BSI status and which qualifying criteria(s) they satisfy. The BSI vetting process begins in conjunction with the AP status review process.

To explore more benefits of being a BSI, refer to our regulatory framework

Any form of lawful business can be carried out within Port City Colombo with the aim of servicing clients overseas. Services can be sought from the local market, but in order to provide a service to the local market, the Colombo Port City Economic Commission’s approval and direction must be sought. As Port City Colombo is demarcated as a multi-service Special Economic Zone, manufacturing business operations are not allowed.

There are two major types of investment opportunities at PCC:

1. Land development investments: Investments can be made into the vertical development of a selected land parcel. Being a master-planned city, land parcels at PCC have been demarcated for a varying cross-section of developments, including residential, commercial (retail and office), mixed-use, hospitality, healthcare, education, and cultural.
2. Business set-up and investments: Investments can be made in setting up and operating businesses within the Special Economic Zone while taking advantage of its fiscal and non-fiscal benefits.

Learn more about Land Development Investments

Learn more about Business Set Up and Investments

PCC is strategically located in the heart of South Asia with attractive fiscal and non-fiscal benefits.

Learn more about the advantages of investing in PCC – read more

No, it is not necessary for registered Authorised Persons (APs) to have an office in PCC. APs can operate from outside the Area of Authority in designated locations till the commercial office spaces within PCC are ready for occupancy.

Office space in PCC will be available by mid-2024, which is when the Port City Business Centre is expected to be ready for occupancy.

Marketable land will be transferred on a 99-year leasehold basis to any developer. However, the end user (buyers of any residential product – i.e. apartments, villas, etc.) would be on a freehold title.

No, there will not be any encumbrances on the legal title of Port City Colombo. The land was recognised as a part of Colombo 01 in May 2021. The title of the deed is clear, and there are no injunctions, caveats, or encumbrances to the ownership of the land.

Yes, there is a building maintenance and strata management law in Colombo, namely, the Apartment Ownership Law and the Condominium Management Authority Law.

An escrow account can be opened with any bank operating in Sri Lanka. Information on the restrictions around the usage of these accounts may be acquired directly from the selected bank.

The Investor Protection Clause

(a) This clause in the Colombo Port City Economic Commission Act No. 11 of 2021 (the Act) states that any licence or concessions granted by the Colombo Port City Economic Commission (CPCEC) will not be altered or withheld.

(b) No registration, licence, authorisation, permit, or other approval granted via the Act and executed by the CPCEC may be terminated or amended in any manner detrimental to the interest of the investor.

The Economic Equilibrium Clause

(a) This clause is incorporated in the project agreements to protect Authorised Persons (APs) from negative financial implications.

(b) In the event an AP incurs an increase in operating expenses due to legal requirements, the CPCEC may adjust the exemptions and incentives to cover the increased operating expenses.

The International Commercial Dispute Resolution Centre

(a) Investors can address matters within the Area of Authority through the International Commercial Dispute Resolution Centre.

PCC has integrated the latest sustainability measures and incorporated Environmental, Social, and Governance principles from a foundation level to establish itself as a “Green and Blue SEZ” while focusing on the live-work-play aspect. As a maritime location, PCC offers activities and experiences that incorporate key waterfront locations — including the first beachfront development in Colombo, a luxury yacht marina, and an array of water-based activities such as canoeing and water taxis — the latter focusing on reducing vehicular traffic and lowering the overall carbon footprint.

By adhering to sustainable construction guidelines, land developers can enjoy an additional 5% GFA allocation at Port City Colombo. The DCRs encourage sustainable development in the Port City Colombo and set a roadmap for world-class, eco-friendly developments.

A set of 72 strict conditions were imposed by the CC&CRMD in their approval for Environmental Impact Assessments (EIA) 1, and 52 conditions for EIA 2. All the conditions stipulated by the authorities are being abided by Port City Colombo (the Project Company).

Port City Colombo’s Master Plan is the overarching document that guides developments within Port City Colombo, making it a liveable master-planned city. The expertise to develop this document was sought from renowned international consultants such as SWECO, Atkins, and Surbana Jurong.

The Master Plan includes details related to the marketable land parcels, their use, building parameters, and details of common areas.

CHEC Port City Colombo (Private) Limited., the primary developer, is responsible for the development of all infrastructure, roads, and open space networks within Port City Colombo as per the approved Master Plan.

Learn more about our Master Plan.

DCRs are legally enforceable regulatory frameworks published by the Government of Sri Lanka that guide the development of marketable plots within Port City Colombo to create a better-planned city and give all stakeholders complete and thorough information on the project.

These regulations were prepared by Surbana Jurong and Atkins in 2018, based on the detailed urban design plans created in line with the Port City Colombo Master Plan.

The DCRs consist of four volumes that expand on relevant regulations and guidelines:

1. Volume 1 – Urban Design
2. Volume 2 – Utilities
3. Volume 3 – Landscaping
4. Volume 4 – Sustainability

Each volume further expands on the relevant regulations and guidelines. Marketable plots have been explicated for easy reference.

Extraordinary gazette no. 2334/47 – June 02, 2023 – http://documents.gov.lk/files/egz/2023/6/2334-47_E.pdf

View subsequent amendments of gazette No. 2358/70 – November 17, 2023 – http://documents.gov.lk/files/egz/2023/11/2358-70_E.pdf

The DCRs are legally enforceable regulatory frameworks prepared to guide the development of marketable plots within Port City Colombo. All physical developments within the marketable plots must adhere to the regulations specified by the DCRs. These DCRs are prepared based on the detailed urban design plans that were created in line with the Master Plan.

Detailed land use regulations, urban design controls, utility regulations, landscaping regulations, sustainability regulations, and building regulations are included in the DCR Gazette Document.

The key terms used for the DCR are defined under regulation 02 of the Colombo Port City Development Control Regulations.

There are four types of permits developers need to apply for during the development and occupancy stage of a project within PCC:

1. Planning clearance
2. Early Pilling Permit (optional)
3. Development Permit
4. Certificate of Conformity

In addition to these permits, developers will need to obtain the following clearances:

1. Insignificant Building works
2. Temporary permit
3. Licence for Temporary Occupation

To ease the planning process, the Colombo Port City Economic Commission functions as the Single Window Investment Facilitator, enabling developers to obtain other necessary clearances from state-owned government agencies.

The prerequisites to apply for planning permits in Port City Colombo (PCC) are as follows:

1. Registration as an Authorised Person with the Colombo Port City Economic Commission (CPCEC) to carry out business in PCC
2. A clear land title to the relevant land plot
3. Submission of a complete application along with relevant forms in the formats provided by the CPCEC
4. Payment proof of the application processing fee as specified in Schedule V of the Development Control Regulations (DCR)

The Colombo Port City Economic Commission (CPCEC) is authorised by the Development Control Regulations (DCR) to handle all planning-related approvals. The CPCEC is the Single Window Investment Facilitator for obtaining all required planning approvals and other authority approvals. All necessary planning applications need to be submitted to the CPCEC as per the regulations specified in the DCR.

The application requirements for planning clearances are specified in Regulation 03 of the Development Control Regulations (DCR).

The Conceptual Development Plan shall be prepared by the Relevant Qualified Person for the land plot with the details specified in Regulation 06 of the DCR. All relevant clearances and approvals required at the Planning Permit stage will be specified in the Planning Clearance. The validity of a Planning Clearance shall be three (3) years from the date of issuing the Planning Clearance.

Developers can refer to Regulation 09 of the Development Control Regulations to obtain the relevant procedure to apply for an early piling permit. Applications for early piling permits can be lodged in parallel to the planning permit application and will be issued within two weeks of the application’s lodged date.

The application requirements for a development permit are specified under Regulation 03 and Regulation 07 of the Development Control Regulations. Planning permits can be obtained within eight weeks if all required information is submitted to the Colombo Port City Economic Commission.

A developer can download/refer to the instructions/checklists and specimen application from the Colombo Port City Economic Commission (CPCEC) website. The CPCEC acts as the Single Window Facilitator for obtaining planning permits within Port City Colombo.

View Development Applications – https://www.portcitycolombo.gov.lk/development-approvals

A development permit is not required for development activities listed in Schedule II as Insignificant Building Works. However, a Temporary Clearance must be obtained from the Colombo Port City Economic Commission prior to carrying out such works.

Yes, if a developer wants to erect a temporary building categorised under Regulation 10 of the Development Control Regulations, clearance must be obtained from the Colombo Port City Economic Commission prior to erection.

A CoC or Licence for Temporary Occupation must be obtained for the occupation of a building or part thereof. The application for a CoC must include certificates of relevant qualified persons and compliance certificates of relevant agencies.

Yes, sections of the Development Control Regulations contain detailed guidelines specifying the minimum requirements for drawings.

Any relevant qualified person can prepare the drawings/design calculations required for the planning approval procedure. However, those drawings/design calculations must be checked and certified by a local qualified person as specified in Schedule III of the Development Control Regulations.

Port City Colombo will provide potable water, sewerage, electricity connections up to the plot boundaries, and high-speed internet connections as required to the respective plot investors through the advanced concept of integrated urban pipeline corridors. Currently, Port City Colombo is about to be connected to the Colombo municipal area via various pipeline connections. The internal pipeline network will be completed by mid-2024.