Port City Colombo lands US $ 300mn investment as phase II moves ahead

• Funding will be deployed for phase II following completion of key regulatory processes, allowing work to begin on core infrastructure and utilities
• Managing Director Xiong Hongfeng says phase II investment is a clear and deliberate statement of long-term commitment of CHEC Port City Colombo to Sri Lanka

Port City Colombo has secured a US $ 300 million foreign direct investment (FDI) commitment from its primary developer, clearing the way for phase II of the flagship reclamation project and delivering an early boost to Sri Lanka’s efforts to revive the long-term capital inflows.

CHEC Port City Colombo, the project’s primary developer, said the funding would be deployed for phase II following the completion of key regulatory processes, allowing work to begin on core infrastructure and utilities within Sri Lanka’s largest urban development initiative and its first multi-services Special Economic Zone.

“This US $ 300 million phase II investment is a clear and deliberate statement of our long-term commitment to Sri Lanka,” Managing Director Xiong Hongfeng said, describing the port city as a “generational project”, rather than a short-term commercial play.

He said that the continued infusion of capital via FDI reflected the confidence in Sri Lanka’s economic direction and the role the port city is expected to play in supporting investment, enterprise and employment.

The latest commitment comes at the start of the new year, as the government looks to attract stable, long-horizon foreign investment to underpin the recovery efforts, strengthen the balance of payments and generate jobs. The phase II spending will focus on expanding the essential infrastructure within the reclaimed city, paving the way for increased private investment and business formation across the construction, services and allied sectors.

Port City Colombo, located off the capital’s seafront, is being developed as a Special Economic Zone, offering tax incentives, transactions in foreign currencies and up to 100 percent foreign ownership for designated businesses of strategic importance. 

Several development projects are expected to break ground in 2026, as Sri Lanka seeks to emulate the elements of international hubs such as Dubai and Singapore, while reinforcing sustainability and liveability.