CoPF approves Gazette amending Port City development regulations, paving the way for revisions to planning and development controls governing the Colombo Port City project, with the aim of improving investment attractiveness and streamlining project implementation.
CoPF approves Gazette amending Port City development regulations to boost investment
The approval was granted by the Committee on Public Finance during a meeting held in Parliament, where lawmakers reviewed a notification published in Extraordinary Gazette No. 2469/02 under the Colombo Port City Economic Commission Act No. 11 of 2021.
The Gazette introduces amendments to the Colombo Port City (Development Control) Regulations No. 1 of 2023, which were originally issued in June 2023 to guide planning, zoning, and construction parameters within the Port City development area.
Officials explained that the revisions are largely technical in nature and aim to refine land-use allocations and building regulations in response to feedback received from prospective investors and developers interested in participating in the large-scale urban project.
Among the key changes approved is an expansion of the land area allocated for electrical infrastructure operations within the Port City zone. The adjustment is intended to accommodate growing energy requirements as development activity increases within the financial and commercial district being built on reclaimed land off Colombo’s coastline.
Authorities also introduced revised limits on the maximum permissible height of buildings within the development area. However, planners confirmed that the original coastal planning concept will remain unchanged, ensuring that building heights gradually increase as development moves inland from the shoreline.
This design principle was introduced to maintain coastal aesthetics and ensure a balanced urban skyline while maximizing land use efficiency in the interior sections of the project.
The decision where CoPF approves Gazette amending Port City development regulations followed extensive discussions among lawmakers and government officials regarding ways to accelerate investment activity within the project.
During the meeting, members of the Committee emphasized the need to simplify administrative procedures for potential investors. They noted that investors currently need to obtain approvals from multiple government agencies, which can create delays and complicate the investment process.
To address this issue, the Committee recommended the establishment of a “single window” or “one-stop shop” system through which investors could obtain all required clearances from a single platform.
Under the proposed system, the Port City Economic Commission would coordinate approvals with several institutions that currently operate independently, including the Civil Aviation Authority of Sri Lanka, the Ceylon Electricity Board, and the National Water Supply and Drainage Board.
Lawmakers also highlighted the importance of stronger coordination between the Board of Investment of Sri Lanka and the Colombo Port City Economic Commission in order to improve foreign investment promotion efforts.
The Committee suggested establishing a formal coordination mechanism between the two institutions to streamline investor engagement and ensure a consistent approach to attracting foreign direct investment into the Port City project.
Government officials also briefed the Committee on infrastructure spending related to the development. According to representatives from the Finance Ministry, approximately 9.9 billion rupees has already been spent on utilities and infrastructure supporting the Port City project.
This includes investments in water supply systems and other essential services required to support commercial and residential developments within the area. Authorities expect total government spending on Port City infrastructure to increase to around 10.5 billion rupees by 2027.
The government plans to recover these costs primarily through rental income generated from land within the project area. Under the proposed revenue structure, the state will receive 100 percent of the rent generated from lands owned by the government.
In addition, the government will collect one percent of the rental income generated from land parcels owned by the developer, CHEC Port City Colombo Ltd., which is responsible for much of the reclamation and development work.
During the discussions, lawmakers also examined broader global developments that could influence investment flows into the project.
Officials noted that geopolitical tensions in the Middle East could create opportunities for Sri Lanka to attract international investors seeking stable locations for regional financial and business operations.
In this context, the move where CoPF approves Gazette amending Port City development regulations is seen as part of a broader effort to position Colombo Port City as a competitive international financial and commercial hub.
The Committee also addressed concerns regarding unauthorized advertisements promoting apartment sales within Port City developments. Lawmakers noted that certain local property developers had advertised apartment projects despite lacking formal approval from the Port City Economic Commission.
Commission officials clarified that two Sri Lankan companies had begun promoting such developments after making preliminary payments but had not received official development authorization.
Committee Chairman Dr. Harsha de Silva confirmed that written notices had been issued instructing the companies to cease promotional activities until proper approvals are obtained.
He also explained that construction activities within the Port City must be financed entirely through foreign exchange sources, either through foreign loans or through property sales to foreign buyers.
However, the regulatory framework still allows certain transactions involving Sri Lankan citizens. According to officials, land taxes related to Port City developments can be paid in Sri Lankan rupees, and apartment units may be sold locally under specific legal conditions.
The move where CoPF approves Gazette amending Port City development regulations therefore represents an important step toward refining the regulatory framework governing one of Sri Lanka’s most ambitious urban development projects.
As the project continues to evolve, policymakers expect that improved regulations, streamlined approval systems, and stronger institutional coordination will help attract greater levels of international investment while ensuring sustainable development within the Port City zone.