FINANCIAL CHRONICLE – Deputy Minister of Industries, Chathuranga Abeysinghe, announced that construction is anticipated to begin in 2025 for investments totaling 1.2 billion US dollars that have already received approval. Additionally, there are investment applications valued at 732 million US dollars awaiting approval.
Abeysinghe informed parliament that the Port City has a pipeline of investments amounting to 3.9 billion US dollars, with 1.2 billion dollars worth of projects already approved. He highlighted that applications for 732 million dollars in investments are currently pending approval.
The Parliament recently passed amendments to the Port City Law, which reduced tax holidays to below 15 years, contingent on the level of investment. Officials from the Colombo Port City Commission informed the parliament’s Committee on Public Finance that discussions are ongoing with over 140 investors who were initially offered 25-year tax holidays under previous incentives.
Following the proposal of reduced tax breaks, 84 investors indicated their intention to proceed, while six opted not to continue, as reported by Chief Operating Officer Revan Wickramasuriya to the COPF. Approximately 70 investors have yet to respond.
In 2023, amid an economic crisis, Sri Lanka offered 25-year tax holidays to strategic investors. These were subsequently reduced to a range of 15 to 4 years based on investment levels, following an amendment to the Port City Law. This adjustment has been attributed to improved investment sentiment due to recent economic stability, as stated by Port City Commission officials to the COPF.
It is expected that in 2026, four investors, including those involved in a residential project and a mixed development, will commence construction activities. (Colombo/Dec08/2026)
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