The Colombo Port City Economic Commission (CPCEC) has unveiled a fresh set of regulations aimed at strengthening investor confidence and regulatory stability, marking a new phase in Sri Lanka’s flagship economic zone.
The new Regulations for Businesses of Strategic Importance (BSI), published under Gazette No. 2454/62 on September 20, 2025, replace the previous framework that lapsed in August. The move comes alongside the government’s broader reform drive, which includes planned amendments to the Colombo Port City Economic Commission Act No. 11 of 2021 to enhance transparency and align governance with international best practices.
Colombo Port City, Sri Lanka’s largest public-private partnership with an initial investment of USD 1.4 billion, is being recalibrated in line with the country’s commitments under the International Monetary Fund’s (IMF) Extended Fund Facility (EFF). These commitments focus on reducing revenue leakages, tightening anti-corruption safeguards, and improving the evaluation of tax incentives.
The IMF’s July 2025 Country Report praised Sri Lanka’s progress, noting that “performance under the program has been generally strong,” while highlighting ongoing steps to strengthen eligibility criteria for investors in the special economic zone.
By March 2025, the CPCEC had licensed 83 Authorised Persons, including 24 BSIs, which together employed over 2,900 staff and invested USD 134 million. By July, licensed entities had expanded to around 140, with four Primary BSIs committing USD 1.3 billion to develop 81,000 square meters of land for residential, retail, and commercial projects.
Officials said these reforms are intended to overcome legacy challenges that once slowed investor interest and development momentum. With a single-window authority and forward-looking policy framework, the CPCEC aims to position Colombo Port City as a resilient hub for global investment and high-value enterprise in South Asia.
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