Investors reluctant to put their money in Colombo Port City

Investors are reluctant to put their money in the Colombo Port City owing to the delay to finalise the regulations related to the Port City Colombo Special Economic Zone.

While the Colombo Port City Economic Commission Bill was passed by Parliament in May 2021, creating the Port City Colombo Special Economic Zone, regulations are yet to be finalized.

“We’re unable to execute our marketing strategies and proceed with other matters of logistics and outreach until the regulatory framework, as provided for by the Colombo Port City Economic Commission Act, is finalized and published by the Government of Sri Lanka,” Thulci Aluwihare, Deputy Managing Director at CHEC Port City Colombo (Private) Limited said.

He said they cannot make any official representations to any parties until this is completed, and until there is clarity over regulations related to taxation.

“If these matters aren’t finalized soon, it may send the wrong signals to investors and cause them to become hesitant, which will impede the progress of development, which at present is proceeding exceedingly well,” he added.

With infrastructure development slated for completion by Q3 of 2023, Port City Colombo is Sri Lanka’s biggest FDI-funded development project with USD 1.4 Bn committed by the project company, USD 1.2 Bn already having been invested, and a further USD 1.5 billion expected to flow in during the vertical development phase, which will commence thereafter.

A USD 7-million Duty-Free Shopping Mall, the first of its kind in South Asia, and a magnet for shopping and tourism, is also expected to open doors at Port City Colombo in April 2023. (Colombo Gazette)