Port City Colombo is a Special Economic Zone dedicated to the export of modern services in Sri Lanka that is set to transform the country’s economic landscape and become a key trade and investment hub in South Asia.
With its strategic location, comprehensive master-planned design and Special Economic Zone benefits, Port City Colombo offers an unparalleled diversity of business opportunities for Middle East investors.
Backed by substantial foreign direct investment, this public-private partnership between the Government of Sri Lanka and CHEC Port City Colombo, the project developer, is poised to revolutionise Sri Lanka’s economy and become a gateway to success in the region.
Port City Colombo’s strategic location at the heart of South Asia positions it as a crucial gateway to some of the world’s fastest-growing economies. With its convenient time zone for doing business with East Asia through to Africa and its five-hour flight radius to major cities in South Asia, Southeast Asia and the Middle East, Port City Colombo offers unparalleled access to a market of over 1.7 billion people.
As Sri Lanka emerges from recent economic challenges, it is now positioned for growth and open to foreign direct investment. The country’s resilient spirit, along with its longstanding trade relationships with the Middle East and its status as a top tourist destination, make it an appealing choice for investors looking to capitalise on the rise of the Global South and South Asia’s economic growth.
Encompassing a sprawling 269 hectares of reclaimed land, Port City Colombo stands as a meticulously master-planned city development featuring five distinct precincts dedicated to commercial, financial, residential, lifestyle and entertainment activities. This strategic approach ensures a dynamic and sustainable urban landscape that caters to the diverse needs of residents, businesses and visitors alike.
The sheer magnitude of the development is truly remarkable, with an anticipated foreign direct investment influx of $15bn upon its completion. Boasting an impressive 6.4 million square metres of built-up space and an estimated population of 273,000, Port City Colombo will soon emerge as a prominent regional hub for commercial interactions.
Port City Colombo offers a diverse range of investment opportunities that go beyond traditional real estate ventures. Investors can select between two primary options of investment: land development investments, which include residential and commercial property development; and business set-up and investments, which encompass a variety of opportunities in information technology, financial services, maritime and logistics, and trade and commerce.
Additionally, Port City Colombo is home to South Asia’s first downtown duty-free retail destination, The Mall at Port City Colombo, which opened its doors in September 2024 and is already emerging as a key tourist hotspot in the city of Colombo. This master-planned city development also encompasses South Asia’s first Luxury Yacht Marina, which broke ground in January 2025, and a premier IT and commercial park known as the Business Centre, which is set to be handed over to tenants in Q1 2025. This progress in development makes Port City Colombo even more appealing to international investors.
Port City Colombo is also Sri Lanka’s first foreign-currency designated Special Economic Zone, which is governed by the Colombo Port City Economic Commission – a government regulatory body and single-window investment facilitator that offers streamlined regulatory processes to create a competitive business landscape. This ensures an enhanced business-friendly environment, including attractive 25-year plus tax incentives, transactions in foreign currency with no capital or exchange controls, 100% foreign ownership, and 100% capital and profit repatriation.
Middle Eastern investors, who are familiar with similar developments in Dubai and other regions, appreciate the Special Economic Zone concept and the opportunities it presents.
The Special Economic Zone status of Port City Colombo creates a favourable environment for businesses, with streamlined regulations, tax incentives and a supportive infrastructure. These advantages, combined with access to Sri Lanka’s skilled and cost-competitive workforce, make Port City Colombo an ideal location for companies looking to establish a presence in South Asia.
The involvement of CHEC Port City Colombo (Pvt) Ltd, a subsidiary of China Harbour Engineering Company (CHEC), a leading global infrastructure provider, adds significant credibility to the project.
As a subsidiary of China Communications Construction Company Limited (CCCC), a listed entity In the Hong Kong and Shanghai stock exchanges, CHEC brings extensive expertise in large-scale infrastructure development, and with over 120,000 employees across 145 countries, has a proven track record of successful partnerships with international businesses. This partnership with CHEC reassures Middle Eastern investors of a reliable and experienced partner, solidifying CHEC’s position as an industry leader dedicated to delivering world-class infrastructure.
“Port City Colombo is a project of regional significance in South Asia, enabling prospective investors to tap into the unparalleled economic opportunities that this investment destination has to offer,” said Xiong Hongfeng, managing director, CHEC Port City Colombo.
“Capitalising on Sri Lanka’s strategic locality and positioning along key shipping routes, Port City Colombo provides a progressive regulatory environment that enhances the ease of doing business in South Asia. Our investment opportunities will appeal to multinational corporations, real estate developers, financial institutions and knowledge-based industries.”
Port City Colombo presents a unique and timely opportunity for Middle Eastern investors looking to be a part of South Asia’s economic growth story. This landmark project, the most significant public-private partnership in Sri Lanka to date, offers a strategic location, a comprehensive masterplan, attractive investment opportunities and Special Economic Zone benefits that are unparalleled in the region.
By investing in Port City Colombo now, Middle Eastern investors can take advantage of lower entry barriers compared to more mature markets, all while benefiting from the region’s rapid economic growth. Serving as both a gateway to South Asia and a launchpad for businesses with ambitious trade goals, Port City Colombo leverages Sri Lanka’s strategic position and strong regional trade potential.
As Port City Colombo continues to develop, it is evident that this iconic project will play a crucial role in reshaping Sri Lanka’s economic future and solidifying its position as a key player in the Global South. For Middle Eastern investors seeking to diversify their portfolios and explore new growth markets, Port City Colombo offers an opportunity that should not be overlooked.
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