Port City Colombo will act as South Asia’s benchmark for environmentally friendly practices and spaces, making it a sought-after lifestyle destination and business & financial district for forward-thinking individuals, businesses and professionals.
With the goal to encourage innovation in sustainable living and business, Port City Colombo welcomes modern practices in sustainable living that promotes environmentally friendly practices that will stand as a testament to the power of green living and energy efficiency.
At present, Port City is executing a multifaceted business strategy that revolves around catalyzing economic growth through strategic planning and innovative initiatives. Port City aspires to draw a diversified variety of sectors and businesses, utilizing their synergies to develop a vibrant center of economic activity. This is done with an emphasis on establishing a diverse and robust ecology. This tactic entails luring both domestic and foreign investors with alluring incentives, simplified rules, and cutting-edge infrastructure.
By placing a high priority on sustainable development, technological integration, and connectivity, Port City is establishing itself as a top choice for forward-thinking businesses wishing to gain a competitive edge on the world market.
Port City’s current business strategy aims to create a world-class economic zone that sets new standards for innovation, growth, and prosperity through strategic collaborations, targeted investments, and the development of a thriving corporate community.
With the above objective in view, Port City Colombo will roll out a five-year plan to turn the economy of the country around by attracting Foreign Direct Investment. The initial five-year roll-out plan calls for $5.6 billion in FDI to hasten Sri Lanka’s economic recovery and establish Port City and Sri Lanka as major players in the service export market. Port City Colombo plans to add $13.8 billion to Sri Lanka’s annual GDP and over 140,000 direct job opportunities. Projected fiscal revenue of $ 1.7 billion is anticipated during the project’s building phase, while annual recurring revenue of about $ 700 million is anticipated throughout the project’s operational phase.
The government has published incentives and tax exemptions for investors planning to launch businesses in the Port City Colombo via Extraordinary Gazettes (2339/31 and 2339/32) dated 7 July, marking a significant advance in the effort to increase foreign direct investments. These tax breaks and incentives will be available to two potential investor groups, each of which has been identified.
Businesses that invest a minimum of $ 25 million in the plots of land for the Marina or that invest $ 100 million per plot of land in accordance with the Port City Colombo (Development Control) Regulations will be eligible for exceptions or incentives under a number of schemes outlined in the gazette.
These incentives include a capital allowance enhancement of 300% of the expenses incurred on depreciable assets, other than intangible assets, used within the Area of Authority of the Port City Colombo during a year of assessment, at 50% of the prevailing corporate tax rate applicable for the relevant year of assessment under the Inland Revenue Act, No. 24 of 2017.
The gazette stated that companies may select one of the two exemption or incentive plans listed and communicate their decision to the Port City Commission. However, once a decision has been made, investors will not be able to modify it afterwards.
Regulations for the payment of dividends or other financial advantages due to firms were published in a second gazette on the same day. As a result, it declared that businesses could use a designated foreign currency other than Sri Lankan rupees to give investors dividends or other financial benefits on their investments.
It stated that if the Commission has leased marketable land to a person or business under Section 39 of the Act and the investor receives a dividend or any other financial benefits within five years of the date the lease was paid, the investor’s Resident Foreign Currency Account with a licenced commercial bank shall be credited with the dividend or other financial benefits.
In addition, it stipulated that companies doing business in the Port City may accept payments made in Sri Lankan rupees for any goods or services rendered, subject to a number of requirements, such as depositing the rupees in a rupee account with a licenced commercial bank and converting them to another currency through the same.
Port City Colombo, a groundbreaking project that spans 269 hectares of ocean reclamation and contains the first-ever Special Economic Zone dedicated to the export of services, intends to completely reshape Sri Lanka’s economic and social landscape. It pledges to provide a world-class infrastructure, a cosmopolitan lifestyle, and ecological living.
Furthermore, investments that would be regarded as Secondary Businesses of Strategic Importance were noted in the gazette. These can be businesses engaged in international trade, shipping logistics, offshore banking and finance, IT, business process outsourcing, corporate headquarters operations, regional distribution operations, tourism and other ancillary services, innovation, entrepreneurship, entertainment, creation of employment opportunities, sustainable development, or operations for urban amenity in the settlement of a city. According to the Gazette, these investors will also receive a few perks and exemptions.
The Port City Colombo Economic Commission recently received the ability to receive development proposals for evaluation and the issuance of Planning Clearance, Development Permits, and Certificates of Conformity, in accordance with the approved Master Plan. The updated Development Control Regulations (DCR) span a buildable area of 6.3 million square meters that will provide a world-class environment for various amenities. These and all other Port City Colombo constructions will be governed under the recently released DCR 2023.
Port City Colombo’s main goal for this year is to bring about benefits to developers, residents, investors, and all other stakeholders, including the local community.
