Sri Lanka is targeting a further US$4.1 billion in investments to the Port City Colombo over the next five years, Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe said.
In a social media statement, Abeysinghe said investments worth US$2.1 billion have already been confirmed for the Port City, as the government seeks to position the special economic zone as a major regional investment destination.
He said the Port City was presented as a key investment opportunity at an Australian investment summit held last week.
Among the international companies identified by the Deputy Minister as having investments or operations linked to the Port City are Horizon Group USA for a global shared services centre, Ansell for global operations, IGT1 for BPO and BPM services, KPMG for offshore professional services and GAC Services for logistics back-office services.
Abeysinghe said the government had also revised what he described as excessive tax concessions previously offered to Port City investors, seeking to bring the incentive framework closer to international standards without reducing its competitiveness.
Under the revised framework, primary Businesses of Strategic Importance can qualify for corporate income tax holidays based on investment criteria, while secondary businesses are eligible for a concessionary corporate income tax rate of 7.5% for four years. The revised framework introduced in 2025 provides primary businesses with tax holidays of up to 15 years.
The Deputy Minister argued that tax incentives alone were not what made the Port City attractive to international investors.
He cited high-speed internet connectivity, Sri Lanka’s strategic location and connectivity to international markets, as well as a lower cost of living compared with hubs such as Dubai and Singapore, among factors supporting investment.
Abeysinghe said two major residential developments, three mixed-development projects, a hotel and a convention centre are also under development at the Port City.
The Colombo Port City Economic Commission has separately highlighted the zone’s strategic location, investor protection framework and fiscal and non-fiscal incentives as key features aimed at attracting foreign capital.
Abeysinghe stressed that investments attracted to the Port City are in addition to foreign investments entering Sri Lanka through the Board of Investment.
He said that with Sri Lanka moving towards greater economic stability and stronger growth, achieving the government’s investment targets for the Port City should be within reach. (Newswire)