Sri Lanka’s drive to position Colombo Port City as a globally competitive special economic zone has received a significant boost with the enactment of the 2026 amendments to the Colombo Port City Economic Commission Act, aimed at improving governance, regulatory clarity, and investor confidence.
The revisions to the Act, which governs the Colombo Port City Economic Commission, introduce a more structured and transparent framework for large-scale strategic investments, while streamlining banking regulations and reinforcing oversight mechanisms aligned with international standards.
A key feature of the amendments is the introduction of a clearer statutory framework for identifying and managing Businesses of Strategic Importance (BSI). The new provisions set out defined minimum investment thresholds, employment creation targets, and applicable incentives, providing investors with greater predictability. The reforms also introduce structured performance monitoring and statutory safeguards, reducing discretionary risk and enhancing transparency in approving and evaluating major projects.
In the financial sector, the amendments strengthen regulatory coherence by placing banking supervision within Port City firmly under the oversight of the Central Bank of Sri Lanka, while maintaining licensing authority with the Finance Ministry subject to central bank concurrence. The changes simplify approval procedures for licensed banks to establish branches and expand the scope for offshore banking activities, supporting the development of international financial services within the zone. This is expected to improve the ease of doing business while ensuring compliance with global regulatory standards.
Meanwhile, investor confidence in the Port City project continues to gather momentum, with two new land lease agreements concluded in January 2026.
Among them, ICC Port City (Private) Limited will undertake a luxury marina residential development targeting high net worth individuals, expatriates, and foreign professionals, contributing to the diversification of high-end residential offerings. In addition, IFC Colombo 1 (Private) Limited will develop a mixed-use project combining commercial, retail, and residential components, aimed at strengthening the integrated urban and business ecosystem within the Port City.
The latest amendments and continued investor interest are seen as reinforcing the Government’s strategy to transform Colombo Port City into a regional hub for investment, financial services, and high-value urban development.
With clearer regulations, enhanced banking frameworks, and sustained land leasing activity, policymakers expect the Port City to play a pivotal role in attracting foreign direct investment and supporting Sri Lanka’s long-term economic growth ambitions.
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