Port City Colombo’s 5-Year Plan Boosts Sri Lanka’s Economic Recovery
Port City Colombo, the largest development project in Sri Lanka since the Mahaweli Development, is set to attract USD 5.6 billion in foreign direct investment (FDI) over the next five years, fueling the nation’s economic recovery. The project aims to position both Port City and Sri Lanka as leading players in the service export industry, contributing significantly to the country’s GDP and balance of payments.
Deputy Managing Director of CHEC Port City, Thulci Aluwihare, stated that Port City Colombo will drive Sri Lanka’s new phase of growth and become a major contributor to the country’s GDP and balance of payments. The focus will be on attracting greenfield FDI in key sectors and enhancing competitiveness within the region.
With the goal of creating over 140,000 direct job opportunities, Port City Colombo is expected to generate USD 13.8 billion annually for Sri Lanka’s GDP. Since the project’s inception, it has already contributed USD 3 billion to the country’s GDP, created 12,000 direct jobs, and provided training to 4,000 Sri Lankan workers through local sub-contractors.
The project’s land reclamation efforts alone involved Sri Lankan companies supplying over 5 million tons of stone, 12 million litres of fuel, 80,000 tons of cement, and 1,200 tons of steel.
In addition to stimulating economic activity, Port City Colombo will serve as a service export hub, attracting global brands to establish operations within the special economic zone. The zone is expected to generate more than 70% of employment in modern services, offering opportunities for skilled workers in a range of sectors.
The Sri Lankan government anticipates a significant increase in economic activity and fiscal revenue from businesses of strategic importance. During the construction stage, an estimated fiscal revenue of USD 1.7 billion is projected, with approximately USD 700 million in recurring revenue per year once the project becomes operational.
Port City Colombo’s ambitious strategy aims to position it as a global centre for business and innovation, with a positive impact on Sri Lanka’s economy. The project has gained considerable interest from investors and businesses looking to access opportunities in the fast-growing South Asian region.
Spanning 269 hectares of reclaimed ocean territory, the Colombo Port City Economic Commission Act established the Special Economic Zone to attract businesses involved in global and regional trade, maritime services, banking and financial services, information technology, professional and knowledge services, corporate headquarters, tourism, and other related services.