Port City Colombo investment reached a major milestone during the first half of 2026, with more than US$600 million in new investments approved through 71 Businesses of Strategic Importance (BSIs), reflecting growing investor confidence in Sri Lanka’s economic recovery and long-term growth outlook.
Government reforms and SEZ incentives drive over $600 million in new Port City Colombo investments, creating jobs and boosting foreign exchange earnings
The Finance, Planning and Economic Development Ministry said the approvals represent one of the most significant investment achievements since the establishment of the Colombo Port City Special Economic Zone (SEZ) and underscore the success of recent policy reforms aimed at improving the country’s investment climate.
According to the Ministry, the strong investment momentum follows the enactment of the Colombo Port City Economic Commission (Amendment) Act, No. 1 of 2026, which introduced a series of reforms to strengthen governance, simplify regulatory procedures, and improve the ease of doing business within the Special Economic Zone.
Among the approved projects are three major real estate developments by Marina Hotel Holdings Ltd., Prime Melwa Port City Ltd., and Home Lands Port City Ltd. These projects include a luxury marina-front hotel, premium residential developments, and a landmark mixed-use project adjacent to Central Park.
The Ministry said investors behind these flagship developments have secured land within Port City Colombo through lease agreements valued at approximately Rs. 40.2 billion. The developments are expected to generate significant additional foreign exchange inflows throughout their construction and development phases over the next five years.
Beyond the major property developments, the Ministry said the broader portfolio of approved businesses is expected to deliver substantial economic benefits.
The approved service-oriented and export-focused businesses are projected to increase foreign exchange earnings while creating more than 10,000 direct employment opportunities, in addition to thousands of indirect jobs across supporting industries.
Businesses receive Business of Strategic Importance (BSI) status based on their contribution to investment, employment generation, export growth, foreign exchange earnings, and international market connectivity. The approved companies operate across a diverse range of sectors, including maritime and logistics services, information technology, digital services, regional headquarters operations, tourism and leisure, as well as real estate and urban development.
Eligible businesses benefit from a range of fiscal and non-fiscal incentives designed to encourage investment and promote internationally traded services within the Special Economic Zone.
The Ministry also highlighted initiatives introduced by the Colombo Port City Economic Commission to simplify investor engagement and accelerate project implementation.
A key component is the Single Window Investment Facilitation Mechanism, which enables investors to obtain approvals through a single point of contact instead of engaging with multiple Government agencies. The streamlined approach is intended to reduce administrative delays and improve the overall investment experience.
In addition, the Commission has introduced an accelerated investment facilitation programme under which investor registration as an Authorised Person can be completed within seven days. Investment agreements can also be executed digitally, while visas for eligible foreign employees can be processed within five working days, subject to due diligence requirements.
These measures are expected to enable businesses to establish operations more efficiently while improving Sri Lanka’s competitiveness as an international investment destination.
The Ministry also acknowledged the contribution of CHEC Port City Colombo Ltd., the project’s master developer, which has invested approximately US$1.4 billion in land reclamation and core infrastructure. This investment has created fully serviced, development-ready land parcels that allow investors to commence projects immediately while benefiting from streamlined planning approvals and construction permits.
Looking ahead, the Ministry reaffirmed Port City Colombo’s long-term vision of attracting approximately US$15 billion in total investments through land leases and project developments under the approved master plan, positioning it among the largest foreign direct investment initiatives in South Asia.
The Government expects the project to deliver broad economic benefits over the coming years by increasing foreign direct investment, expanding employment opportunities, strengthening export earnings, facilitating technology transfer, and enhancing Sri Lanka’s integration into regional and global markets.