The 2026 amendments to the Colombo Port City Economic Commission (CPCEC) Act represent a significant transformation in Sri Lanka’s economic framework. By aligning national policies with international standards, these revisions enhance governance, streamline oversight, and offer the regulatory certainty necessary for substantial international investments.

What do the 2026 CPCEC Act Amendments Offer to Investors?

Structured Framework for Businesses of Strategic Importance (BSI)

The amendments introduce a more defined and predictable statutory framework for the identification, approval, and monitoring of Businesses of Strategic Importance (BSI). This provides investors with increased certainty and transparency for large-scale and strategic capital investments. Key enhancements include:

• Minimum investment thresholds, employment creation targets, and applicable incentives and exemptions.
• Structured performance monitoring and post-implementation evaluation, reducing discretionary risk.
• Statutory due process safeguards.

Together, these reforms establish a stable, accountable, and investor-friendly environment that aligns with national economic priorities.

Streamlined Banking Operations under Central Bank of Sri Lanka (CBSL) Oversight

The amendments reinforce a unified regulatory framework for banking activities within the Colombo Port City, placing supervisory oversight squarely with the CBSL. The Minister of Finance retains licensing authority for these activities, with the concurrence of the CBSL. Key improvements include:

• Simplified approval process for CBSL-licensed banks to establish branches.
• Expanded scope of permitted offshore banking activities, fostering growth in international financial services.
• Clear supervisory authority, eliminating regulatory overlap and uncertainty.

These reforms significantly enhance the ease of doing business for banking activities within the Colombo Port City, ensuring a credible and well-regulated banking environment that adheres to international standards while maintaining national regulatory oversight.

Continued Momentum in Leasing Marketable Lands

Market confidence remains robust. In January 2026, two new land lease agreements were finalized, highlighting ongoing demand and development momentum:

• ICC Port City (Private) Limited: The Luxury Marina Residential Development aims to attract high-net-worth individuals, expatriates, foreign professionals, investors, and marina lifestyle enthusiasts, contributing to the diversification of residential offerings within Colombo Port City.
• IFC Colombo 1 (Private) Limited: This Mixed-Use Development project will integrate commercial, retail, and residential components to support a globally competitive urban ecosystem within Colombo Port City.

These reforms advance the Government’s vision of Colombo Port City as a world-class Special Economic Zone, positioning it as a prime destination where global investors can invest, operate, and thrive within a secure environment.

Investors and developers are encouraged to visit www.portcitycolombo.gov.lk for further information on the regulatory framework of Colombo Port City.

References

• Colombo Port City Economic Commission Act Amendment – https://documents.gov.lk/view/acts/2026/1/01-2026_E.pdf
• ICC Port City (Private) Limited – BSI https://www.documents.gov.lk/view/extra-gazettes/2025/7/2445-05_E.pdf
• IFC COLOMBO 1 (PVT) LIMITED – BSI – https://www.documents.gov.lk/view/extra-gazettes/2025/7/2445-04_E.pdf