Port City Colombo

කොළඹ වරාය නගරය

Colombo Port City

An artist’s impression of the city at Galle Face

Port City Colombo

Location in Colombo

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Port City Colombo

Location in Colombo District

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Port City Colombo

Location in Sri Lanka

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Coordinates:  [ ⚑ ] : 06°56′00″N 79°50′00″E﻿ / ﻿6.9333333°N 79.8333333°E﻿ / 6.9333333; 79.8333333
Country| Sri Lanka
City| Colombo
Area

• Total| 2.69 km2 (1.04 sq mi)
Time zone| UTC+05:30 (Sri Lanka Standard Time)
Website| www.portcitycolombo.lk
In April 2025, Port City Colombo, in partnership with the Fintech Association of Sri Lanka (FASL), hosted the Regional Competition of the FinTech World Cup at the Port City premises. The event formed part of efforts to position Port City Colombo as an emerging regional centre for financial technology and innovation.

Port City Colombo (Sinhala: කොළඹ වරාය නගරය, romanised: Koḷam̆ba Warāya Nagaraya) is a multi-services special economic zone located in Colombo, Sri Lanka, which is currently under construction on reclaimed land adjacent to the Galle Face Green. The land reclamation work had been completed as of January 2019. In 2017, the cost was slated to be US$ 15 billion. Port City Colombo is a multi-billion-dollar FDI-funded Public Private Partnership (PPP).

Port City Colombo aims to facilitate connections to the South Asian market through investment opportunities, international business environments, world-class infrastructure, and high-quality sustainable living.

Upon completion, Port City Colombo will feature five distinct precincts: the Financial District, Central Park Living, Island Living, the Marina, and the International Island. The city will additionally encompass over 6.4 million square metres of new developments in residences, healthcare, education, entertainment, hotels, restaurants, retail, and commercial complexes.

In May 2021, the Parliament of Sri Lanka approved the Port City Commission Bill to establish the Colombo Port City Special Economic Zone and Economic Commission. Under this law, companies can be exempt from all taxes, personal, corporate, excise, import, and every other tax for up to forty years.

## Contents

* 1 Geography
* 1.1 Special Economic Zone
* 2 Feature Developments
* 3 Background
* 3.1 Land reclamation
* 3.2 Basic infrastructure
* 4 Investments
* 5 FinTech hub
* 6 Sustainability
* 7 Reception
* 8 Gallery
* 9 References
* 10 External links

## Geography

Port City Colombo is located in the metropolis of Colombo, Sri Lanka, which is positioned within South Asian trade routes. The master-planned city is to be constructed between the southern edge of the new Colombo South Port and the Fort Lighthouse. The total area of sea to be reclaimed is 269 ha (660 acres).[1][2]

### Special Economic Zone

The Port City Colombo Special Economic Zone (SEZ), governed by the Colombo Port City Economic Commission (CPCEC), was established under the Colombo Port City Economic Commission Act, No. 11 of 2021 to promote international investment and business services. The SEZ initially offered generous fiscal and regulatory incentives—including tax holidays of up to 25 to 40 years for “Businesses of Strategic Importance (BSIs)”, unrestricted foreign-exchange transactions in sixteen designated currencies, 100 percent foreign ownership and profit repatriation, and preferential five- to ten-year residence visas for foreign professionals and their dependents.[3][4][5]

Under the IMF-supported Extended Fund Facility (EFF) program agreed between 2023 and 2025, Sri Lanka committed to revising these concessions to ensure transparency and fiscal discipline. The government subsequently suspended new tax-holiday approvals under the Port City Act and the Strategic Development Projects (SDP) Act until new, rules-based criteria were enacted.[6][7]

In September 2025, Regulation No. 01 of 2025 introduced a new incentive framework for BSIs, reducing tax-holiday durations and setting clearer qualifying thresholds. According to KPMG Sri Lanka, new primary BSIs now qualify for corporate-income-tax holidays of 8 to 15 years, while secondary BSIs receive a concessionary 7.5 percent rate for four years.[8][9]

Despite the fiscal tightening, the SEZ continues to promote investment in service-oriented sectors including information technology and IT-enabled services (IT/ITeS), financial services, logistics and maritime operations, professional services, corporate headquarters operations, tourism, and sustainable urban development.[10]

## Feature Developments

* Future developments at Port City Colombo focus on creating a favourable environment for business, investment, and lifestyle. Confirmed and promoted projects include:[11]

* Colombo International Financial Centre (CIFC) — a flagship mixed-use complex within the SEZ; the Government granted wide-ranging tax exemptions to the CIFC mixed-development project.[12][11]

* Luxury yacht marina — construction has commenced; trade and regional media report a 2027 completion target and marina amenities.[13][14]

* International school — British independent-school operators have shown interest; the project has advanced through government approvals alongside higher-education plans.[15][16]

* International university — Cabinet approved leases for a private university within PCC; related higher-education developments have been reported by business media.[17][18]

* Convention centre — the Government announced a large exhibition and convention centre for PCC as a grant project from China, with local media noting scale comparable to major national venues.[19][20]

* International hospital — Cabinet approved the lease for a major private hospital at PCC, led by Asiri/Softlogic group interests.[21][22]

* Luxury villas — authorities granted strategic/BOI-style incentives to a residential project including two towers and five luxury villas within PCC.[23][24]

* Marina hotel — business media report dedicated hotel and marina developments on PCC plots held by Marina Hotel Holdings Ltd.[25]

* Downtown duty-free facility — Sri Lanka opened its first urban downtown duty-free mall at PCC in September 2024; travel-retail media and local news covered operator roll-outs (e.g., One World Duty Free, China Duty Free Group, Flemingo).[26][27][28]

## Background

The Port City was claimed to be a concept of former President Mahinda Rajapaksa, who was apparently inspired while inspecting the landfill being constructed for the Colombo South port.[29][30][31] The modern Port City Colombo was based on a concept proposal submitted by China Harbour Engineering Company[32]

Construction works at Portcity

The construction was set to begin in March 2011, but the project was put on hold due to several circumstances. In mid-2012, the Sri Lankan Ports Authority (SLPA) announced that the construction of the then Port City Colombo project would commence on 17 September 2014. The budget was estimated to be $1.4 billion.[33]

The reclamation was to be carried out by China Harbor Engineering Corporation, who has been engaged by the investor.

Construction of the Port City Colombo project was launched on 17 September 2014 by former Sri Lankan President Mahinda Rajapaksa and General Secretary of the Chinese Communist Party Xi Jinping.[34]

Colombo Port City (land reclamation) seen from Galle road.

The Port City Colombo was suspended after the end of the Rajapaksa government in 2015 due to alleged claims related to the sovereignty of Sri Lanka and adverse environmental impacts.[35][36][37]

The Port City Colombo is governed by an independent authority and will not be subject to the Colombo Municipal Council. A special legal framework would enable it to operate on a subset of commercial law, in terms of contracts and commercial transactions with its own Special Colombo Financial Court serving as the court of first instance and provision of appeal to the Supreme Court of Sri Lanka. It would have its own international commercial dispute resolution center for arbitration proceedings.[38][39]

### Land reclamation

Port City Colombo consists of around 269 hectares of reclaimed land where all land titles are vested with the Government of Sri Lanka.

Land reclamation in November 2015

At a question and answer section in July 2018, the Prime Minister stated that the land reclamation would be finished within one year and that construction should begin by next year, and that the government seeking assistance in establishing the legal construct for the administrative area.[40] This was successfully completed in January 2019 according to the Ministry of Megapolis and Western Development.[41]

The project was around three months ahead of its targeted completion as of January 2019.[42]

### Basic infrastructure

Footbridge in Port City

China Daily reported in April 2019 that the hydro structural construction would be complete by the middle of 2019, with the construction of municipal facilities being completed by July 2020.[43]

The Road Development Authority had sent approval for the new road network and piling work had begun for the nine bridged by January 2019.[44]

## Investments

By December 2020, Sri Lankan conglomerate LOLC Holdings leased out five land parcels amounting to $200 million and signed an agreement with China Harbour Engineering for a mixed development project, with the investment value totaling $1 billion. The project includes residential, commercial and retail assets set to break ground in mid-2021. This is the first major investment in Port City Colombo.[45]

## FinTech hub

Fintech Association of Sri Lanka (FASL) has launched an initiative to draft a report titled, Enhancing Colombo International Financial City (Port City Colombo) as a Leading Fintech Hub in South Asia to submit to the President of Sri Lanka; the initiative is being assisted by a number of fintech experts globally and Professor Douglas Arner, Kerry Holdings Professor in Law at the University of Hong Kong (HKU) as the chief consultant.[46]

## Sustainability

Before land was reclaimed for the development of Port City Colombo, Environmental Impact Assessments (EIAs) were conducted to ensure that the construction of the Special Economic Zone followed sustainable practices.[47]

The layout and development of the city’s infrastructure are designed to support sustainability, and the Port City Colombo Master Plan includes several green spaces across the site.[48] Development Control Regulations (DCRs) also incentivise developers who meet green building standards.[49]

Port City Colombo follows eco-friendly infrastructure development practices by adopting sustainable design principles, renewable energy, and energy-efficient building standards.[50] Once construction is completed, the city is expected to feature a non-motorised transport system that encourages walking and cycling through shaded walkways, supported by an integrated Light Rail Transit (LRT) network.[51]

## Reception

In October 2025, Port City Colombo was named the "Best Knowledge Zone – Asia Pacific Region" and received a "Highly Commended" citation for Sustainable Zones in the *Global Free Zones of the Year 2025* rankings by fDi Intelligence (Financial Times, UK).[52][53] It also received the "Visionary Award for Next-Generation Financial Hub Development" at the Asian Digital Finance Forum & Awards 2025, held as part of the Asia International Digital Economy & AI in Finance Summit at Port City Colombo.[54][55]

## Gallery

* Port City Colombo

* Port City Colombo

* Coral Reef at Port City Colombo

* Port City Colombo - Marina

* Pedestrian Bridge at Port City Colombo

* Port City Colombo Beach

* Port City Colombo - Progress Update

* Port City Colombo view

## References

1. ↑ "Port City to attract US$ 13 bn investment from 2018: company" (in en). https://www.dailymirror.lk/business-news/Port-City-to-attract-US-bn-investment-from-company/273-126579.
2. ↑ "Formula One Track To Be Built On Planned 'New Port City' Colombo". The Sunday Leader. 2014-05-02. http://www.thesundayleader.lk/2011/01/09/formula-one-track-to-be-built-on-planned-‘new-port-city’-colombo/.
3. ↑ "Why Invest in Port City Colombo". https://www.portcitycolombo.lk/investor-relations/why-invest-in-port-city-colombo/.
4. ↑ "Colombo Port City Economic Commission Act, No. 11 of 2021 – Full Text". https://www.srilankalaw.lk/revised-statutes/alphabetical-list-of-statutes/1945-colombo-port-city-economic-commission-act.html.
5. ↑ "Colombo Port City SEZ: Driving Sri Lanka’s Growth and Global Business Appeal". 24 October 2024. https://www.portcitycolombo.gov.lk/news/20241024/colombo-port-city-sez-driving-sri-lankas-growth-global-business-appeal.
6. ↑ "Sri Lanka halts Port City, SDP tax breaks, laws to be changed in IMF benchmark". EconomyNext. 4 July 2025. https://economynext.com/sri-lanka-halts-port-city-sdp-tax-breaks-laws-to-be-changed-in-imf-benchmark-228557/.
7. ↑ "IMF Press Briefing on Sri Lanka’s Fourth Review under the EFF". 3 July 2025. https://www.imf.org/en/News/Articles/2025/07/03/070325-press-briefing-transcript-on-the-imf-board-completion-of-sri-lankas-4th-review-for-the-eff.
8. ↑ "Guidance on Tax Exemptions and Incentives for Businesses of Strategic Importance in Colombo Port City". 22 September 2025. https://kpmg.com/us/en/taxnewsflash/news/2025/09/sri-lanka-guidance-tax-exemptions-and-incentives-colombo-port-city.html.
9. ↑ "Govt to curb tax holidays for mega projects and Port City under IMF pressure". Lanka News Web. 21 July 2025. https://lankanewsweb.net/archives/99938/govt-to-curb-tax-holidays-for-mega-projects-and-port-city-under-imf-pressure/.
10. ↑ "Overview of the Colombo Port City Economic Commission Act 2021". 18 April 2024. https://www.varners.law/view-insight/overview-of-the-colombo-port-city-economic-commission-act-2021.
11. ↑ 11.0 11.1 "Port City Colombo – Master Plan". https://www.portcitycolombo.lk/about-port-city-colombo/master-plan/.
12. ↑ Kirinde, Chandani (29 July 2020). "Govt. unveils tax breaks for Colombo International Financial Centre". Daily FT. https://www.ft.lk/Front-Page/Govt-unveils-tax-breaks-for-Colombo-International-Financial-Centre/44-703848.
13. ↑ "Colombo City Marina in Sri Lanka due for completion in 2027". 23 January 2025. https://www.superyachttimes.com/yacht-news/colombo-city-marina-in-sri-lanka.
14. ↑ "Port City Colombo celebrates the groundbreaking of the Luxury Marina Development". Gulf News. 13 January 2025. https://gulfnews.com/gn-focus/port-city-colombo-celebrates-the-groundbreaking-of-the-luxury-marina-development-1.500015067.
15. ↑ "British independent schools show interest in setting up int’l school at Port City". Daily Mirror. 26 January 2023. https://www.dailymirror.lk/business-news/British-independent-schools-show-interest-in-setting-up-intl-school-at-Port-City/273-252941.
16. ↑ "Cabinet clears Asiri Hospital, Gateway University leases at Colombo Port City". Daily Mirror. 14 August 2024. https://www.dailymirror.lk/business-news/Cabinet-clears-Asiri-Hospital-Gateway-University-leases-at-Colombo-Port-City/273-289467.
17. ↑ "Sri Lanka Port City land for $100mn Asiri hospital, Gateway campuses". EconomyNext. 13 August 2024. https://economynext.com/sri-lanka-port-city-land-for-100mn-asiri-hospital-gateway-campuses-176651/.
18. ↑ "Cabinet clears Asiri Hospital, Gateway University leases at Colombo Port City". Daily Mirror. 14 August 2024. https://www.dailymirror.lk/business-news/Cabinet-clears-Asiri-Hospital-Gateway-University-leases-at-Colombo-Port-City/273-289467.
19. ↑ "Sri Lanka Port City to get big convention centre from China: President". EconomyNext. 20 January 2025. https://economynext.com/sri-lanka-port-city-to-get-big-convention-centre-from-china-president-200416/.
20. ↑ "Another Chinese convention centre". The Morning. 26 January 2025. https://www.themorning.lk/articles/ehzYABeUP5yBJiCu43uJ.
21. ↑ "Sri Lanka Port City land for $100mn Asiri hospital, Gateway campuses". EconomyNext. 13 August 2024. https://economynext.com/sri-lanka-port-city-land-for-100mn-asiri-hospital-gateway-campuses-176651/.
22. ↑ "Cabinet clears Asiri Hospital, Gateway University leases at Colombo Port City". Daily Mirror. 14 August 2024. https://www.dailymirror.lk/business-news/Cabinet-clears-Asiri-Hospital-Gateway-University-leases-at-Colombo-Port-City/273-289467.
23. ↑ "Four Colombo Port City projects over US$ 1bn granted strategic status". Daily Mirror. 21 July 2025. https://www.dailymirror.lk/business-news/Four-Colombo-Port-City-projects-over-US-1bn-granted-strategic-status/273-314677.
24. ↑ "Sri Lanka Port City ICC unit gets 25-year tax holiday for Rs13.8bn residential towers". EconomyNext. 21 July 2025. https://economynext.com/sri-lanka-port-city-icc-unit-gets-25-year-tax-holiday-for-rs13-8bn-residential-towers-231842/.
25. ↑ "BIL in SL marina and hotel developments". The Sunday Times (Sri Lanka). 29 December 2024. https://www.sundaytimes.lk/241229/business-times/bil-in-sl-marina-and-hotel-developments-581789.html.
26. ↑ "Sri Lanka unveils 'The Mall' at Port City Colombo". Daily Mirror. 7 September 2024. https://www.dailymirror.lk/business-news/Sri-Lanka-unveils-The-Mall-at-Port-City-Colombo/273-291238.
27. ↑ "“A pivotal moment” – One World Duty Free opens at Port City Duty Free Mall in Sri Lanka". 1 January 2025. https://moodiedavittreport.com/a-pivotal-moment-one-world-duty-free-opens-at-port-city-duty-free-mall-in-sri-lanka/.
28. ↑ "“The Mall” Opened At Colombo Port City". News 1st. 6 September 2024. https://www.newsfirst.lk/2024/09/06/“the-mall”-opened-at-colombo-port-city.
29. ↑ "Formula One Track To Be Built On Planned 'New Port City' Colombo". Thesundayleader.lk. http://www.thesundayleader.lk/2011/01/09/formula-one-track-to-be-built-on-planned-‘new-port-city’-colombo/.
30. ↑ Philips, Rajan (5 December 2015). "The Megapolisation of Colombo: Is a compromise on Port City achievable?". The Island. http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=136525.
31. ↑ Wijeratne, Yudhanjaya. "This is the Colombo Port City?". http://icaruswept.com/2015/03/29/this-is-the-colombo-port-city/.
32. ↑ "Critical Analyses of Colombo Port City Project". Daily Mirror. 16 December 2014. http://www.dailymirror.lk/63749/critical-analyses-of-colombo-port-city-project.
33. ↑ Gamini Gunaratna, Sri Lanka News Paper by LankaPage.com (LLC)- Latest Hot News from Sri Lanka (30 July 2012). "Construction of Sri Lanka's port city to begin later this year". Colombopage.com. http://www.colombopage.com/archive_12A/Jul30_1343633133CH.php.
34. ↑ "Colombo Port City Project Launched". News.lk. 17 September 2014. http://www.news.lk/news/business/item/2987-colombo-port-city-project-will-be-launched-today.
35. ↑ "Outright land ownership to China at Port City dangerous, points out maritime sector veteran: Interview". 16 March 2015. http://bizenglish.adaderana.lk/outright-land-ownership-to-china-at-port-city-dangerous-points-out-maritime-sector-veteran-interview/.
36. ↑ "Colombo Port City will be scrapped: Ranil". 16 December 2014. http://www.dailymirror.lk/59031/colombo-port-city-will-be-scrapped-ranil.
37. ↑ "Port city project will resume under new agreement". 31 October 2015. http://colombogazette.com/2015/10/31/port-city-project-will-resume-under-new-agreement/.
38. ↑ "Sri Lanka to create special economic zone law, financial court, for Port City". Economynext. https://economynext.com/sri-lanka-to-create-special-economic-zone-law-financial-court-for-port-city-11942/.
39. ↑ Sirimanna, Bandula. "Constitutional amendment required for Port city laws". Sunday Times. http://www.sundaytimes.lk/170827/business-times/constitutional-amendment-required-for-port-city-laws-256014.html.
40. ↑ "CIFC laws before Cabinet in two months: PM" (in English). 11 July 2018. http://www.ft.lk/top-story/CIFC-laws-before-Cabinet-in-two-months--PM/26-658808.
41. ↑ "Sri Lanka's Port City completes land reclamation". 15 January 2019. http://www.colombopage.com/archive_19A/Jan15_1547571984CH.php.
42. ↑ "Colombo Port City project is of great importance to us, says Chinese envoy". Business Standard India. Press Trust of India. 2019-01-16. https://www.business-standard.com/article/international/colombo-port-city-project-is-of-great-importance-to-us-says-chinese-envoy-119011600650_1.html.
43. ↑ "Belt and Road projects: Past, present, future". 22 April 2019. p. 6. https://www.chinadaily.com.cn/a/201904/22/WS5cbcf141a3104842260b7627_6.html.
44. ↑ "Tripartite agreements for Port City investments" (in English). 15 January 2019. http://www.ft.lk/top-story/Tripartite-agreements-for-Port-City-investments/26-670863.
45. ↑ "LOLC and CHEC to invest in Port City Colombo" (in en). 2020-12-25. http://archives1.sundayobserver.lk/2020/12/27/business/lolc-and-chec-invest-port-city-colombo.
46. ↑ "Colombo Int'l Financial City as top fintech hub - FASL" (in en). 2023-10-09. https://www.dailynews.lk/2023/10/09/business/159019/colombo-intl-financial-city-as-top-fintech-hub-fasl/.
47. ↑ "Supplementary Environmental Impact Assessment (SEIA) Report: Proposed Colombo Port City Development Project". Central Engineering Consultancy Bureau. December 2015. https://www.slideshare.net/slideshow/final-seia-report-english-opened-for-public-comments-new/56152695.
48. ↑ "Port City Colombo Master Plan". CHEC Port City Colombo (Pvt) Ltd. https://www.srilankabusiness.com/pdfs/announcements/2023/external/port-city/port-city-colombo-master-plan.pdf.
49. ↑ "Port City Colombo – Master Plan". Port City Colombo Official Website. https://www.portcitycolombo.lk/about-port-city-colombo/master-plan/.
50. ↑ "Sustainability at the Core". Port City Colombo Official Website. https://www.portcitycolombo.lk/sustainability/.
51. ↑ "Port City Colombo – Transport Strategy". Embassy of Sri Lanka in Beijing. https://www.beijing.embassy.gov.lk/download/Port City Colombo.pdf.
52. ↑ "Port City Colombo named 'Best Knowledge Zone' in Asia Pacific by fDi Intelligence, UK". Daily FT. 18 October 2025. https://www.ft.lk/business/Port-City-Colombo-named--Best-Knowledge-Zone--in-Asia-Pacific-by-fDi-Intelligence-UK/34-783152.
53. ↑ "Port City Colombo named Asia-Pacific's Best Knowledge Zone for 2025". Ada Derana. 18 October 2025. https://www.adaderana.lk/news/113675/port-city-colombo-named-asia-pacifics-best-knowledge-zone-for-2025.
54. ↑ "Port City Colombo honoured at Asian Digital Finance Forum and Awards 2025". Daily FT. 27 October 2025. https://www.ft.lk/financial-services/Port-City-Colombo-honoured-at-Asian-Digital-Finance-Forum-and-Awards-2025/42-783484.
55. ↑ "Asian Digital Finance Forum and Awards 2025 held at Port City Colombo". Daily Mirror. 31 October 2025. https://www.dailymirror.lk/business-news/Asian-Digital-Finance-Forum-and-Awards-2025-held-at-Port-City-Colombo/273-323713.

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