While Colombo Port is currently the world’s 18th best connected port, following Sri Lanka’s government long-term and strategic view the new Port City, Colombo is projected to become the next hub of South Asia. Indeed, it has been conceived as a brand new city development built as an extension of the existing Colombo CBD but using the latest sustainable city design and smart city concepts. With a total expected investment of USD15 billion, the project is expected to be built in two phases spanning nearly 25 years and is targeted to be finished by 2041, when it will have 269 hectares of reclaimed land, of which 179 hectares will be destined to city development.
As it is projected, Port City, Colombo will be made up of five different precincts, each with its own distinct features: the island living district, central park living, the financial district, the international island and the marina. When completed, Port City, Colombo is estimated to have 5.7 million square metres of build up space Grade-A office buildings, international school, healthcare facility, integrated resort, marina, retail destinations, top hotels and various lifestyle developments.
Port City, Colombo will be made up of five different precincts, each with its own distinct features: the island living district, central park living, the financial district, the international island and the marina.
So far, The Port City Economic Commission bill was passed in Parliament on 20 May 2021 and it sets a stable policy environment and an efficient framework of administrative processes to both attract foreign investors and create over 200,000 jobs for locals. Among the many benefits Sri Lanka’s government offers to potential investors are a 99 years land agreement/ownership lease and several tax advantages such as: income tax holidays for up to 25 years and a waiver of border tariffs & sales taxes on construction material with cost savings of 30% to 40% depending on the size of the investment; dividends to non-resident entities are exempt from income and withholding taxes; property and wealth taxes are also not applicable; avoidance of double-tax treaties with 44 nations and a 100% repatriation of capital and profits. Moreover, Port City is expected to be declared as a Special Economic Zone for services, with enhanced fiscal incentives and simplified processes for investment and conducting business.
Among the many benefits Sri Lanka’s government offers to potential investors are a 99 years land agreement/ownership lease and several tax advantages such as: income tax holidays for up to 25 years and a waiver of border tariffs & sales taxes on construction material with cost savings of 30% to 40% depending on the size of the investment.
With its special combination of a huge potential for highly profitable investment opportunities, strategic location as a gateway to India and a key link in China’s Belt and Road initiative, strong historical economic ties with some of the world’s most powerful economies, attractive investment benefits, and last but not least a long-term, open-minded and efficiency-oriented perspective on doing business, Sri Lanka is ready to face the challenges of our era and poised to become the next hub in South Asia. Along with its Asian neighbors, it is actively contributing to the region’s transformation as the world’s new economic power.
