The Sri Lankan government is setting the stage for Colombo Port City to become a global hub for IT and Business Process Outsourcing (BPO) firms, supporting its vision to develop a USD 15 billion digital economy by 2030. Modeled after Dubai and Singapore, the Port City’s regulatory framework now includes competitive tax breaks, provisions for USD payments to employees, and secure banking regulations to attract international investors.
Positioning itself as a compelling destination for IT and BPO sectors, Colombo Port City aims to channel foreign direct investments (FDI) directly into the Sri Lankan economy. With 79 Authorized Persons (APs) already registered, including high-profile entities from India, the UAE, Singapore, the UK, Norway, and the US, Colombo Port City has shown strong international appeal as a new regional business hub.
Over 100 additional companies are currently exploring operations within the Port City’s Special Economic Zone (SEZ). Unlike other zones managed by Sri Lanka’s Board of Investment (BOI), the SEZ policies within Port City are specifically aligned with foreign earnings, export services, and new investments, ensuring that benefits apply only to those contributing new value to Sri Lanka’s economy.
With its simplified single-window investment facilitation, Colombo Port City aims to attract high-value FDI, promote innovation, and foster employment growth. The SEZ’s unique advantages, including streamlined regulations and competitive tax benefits, have positioned it as a key growth area, aligning with Sri Lanka’s goals of enhancing innovation and economic resilience.
An official commented, “The SEZ is well-positioned to become South Asia’s premier financial and business hub, providing an optimal environment for both local and international investors seeking to expand their global services.”