Port City – the gateway to South Asia
Port City Colombo is one of South Asia’s most ambitious urban developments: a carefully planned smart city reclaimed from the Indian Ocean that is reshaping Colombo’s skyline. It extends the central business district of Sri Lanka’s commercial capital, combining luxury living, business, retail and world-class tourism.
Colombo is consistently ranked among the most liveable cities in South Asia for quality of life, human capital and competitive business costs. Port City is the next step: a new financial and lifestyle hub linking Sri Lanka with the economic centres of South and East Asia.
Project overview
- Location: south-east of the “Island Living” district, Port City Colombo
- Land area: 6 acres
- Minimum investment: USD 229 million
The plot is on the first line to the sea, with open views of the Indian Ocean and the new marina and a panoramic outlook over Colombo’s financial district: an ideal location for an international luxury hotel serving tourists, business travellers and investors from around the world.
Ownership and partnerships
- Foreign investors may hold 100% ownership of real estate in the project.
- The project company supports strategic partnerships (JV or PPP) with local and international entities in tourism, hospitality and real estate.
Key advantages of investing in Port City
- Special Economic Zone (SEZ): dedicated legislation promoting services such as offshore banking, technology, regional headquarters, tourism and entertainment.
- Global convention and financial centre: a state-of-the-art convention centre and new financial centre will make Colombo a MICE hub for South Asia.
- Accelerating growth: GDP per capita is expected to double from USD 4,000 to USD 8,000 over the coming decade.
- CBD extension: a direct continuation of Colombo’s existing business district.
- Quality workforce, competitive costs: 92% literacy and labour costs around 30% below the regional average.
Investor incentives
- Income-tax exemption of up to 25 years (depending on investment size)
- Customs duty and VAT exemption on construction materials, saving 30–40% of costs
- 99-year lease from the Government of Sri Lanka; residential units transferable freehold
- Dividends to foreign investors exempt from income tax and withholding tax
- No property or wealth tax; double-taxation treaties with 46 countries
- Full repatriation of profits and capital
Strategic location
Port City sits at the heart of South Asia with direct access to the trade routes of India, the Middle East and South-East Asia, connected to Sri Lanka’s expressways, railways, airports and seaports.
Summary
Supportive legislation, generous incentives, a strategic location and growing demand for luxury assets make Port City one of the most promising investment zones in Sri Lanka.
Figures are as presented by the project owner or public sources and have not been independently audited. This page is general information, not investment, legal or tax advice. Investors should complete their own due diligence.
Frequently asked questions
How large is the Port City hotel site and what is the minimum investment?
Six acres in the Island Living district of Port City Colombo, with a minimum investment of USD 229M.
Can a foreign investor own 100% of the project?
Yes. Port City Colombo allows foreign investors 100% ownership of real estate, and JV or PPP structures are also available.
What incentives apply?
Income-tax exemption of up to 25 years depending on investment size, customs duty and VAT exemption on construction materials, a 99-year government lease, tax-free dividends for foreign investors and full repatriation of profits and capital.
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