CDF Duty Free at Port City eyes indian luxury spenders as traveller footfall tops 120,000

By Nishel Fernando 

China Duty Free (CDF) at Port City Colombo is strategically targeting the high-net-worth Indian demographic for its next phase of exponential growth, having successfully surpassed the milestone of serving 120,000 travellers. 

Backed by an initial investment of approximately US$ 5 million, the downtown duty-free retail concept has positioned itself as a regional-standard destination since its opening, offering a curated portfolio of international brands comparable to major hubs such as Dubai, Singapore, and Hong Kong.

CDF Sri Lanka Country Manager Dimantha Kinigama highlighted that the global duty-free industry currently stands at US$ 80 billion, with significant dominance shifting towards the Asia Pacific region due to emerging markets. He emphasised that capturing the Indian traveller is crucial for Sri Lanka’s retail ecosystem to compete with regional heavyweights.

 “The dominance comes from the fact that China is a big duty-free market and the emerging Indian market are spending. 100 million upper-income group Indians are now travelling. And when you travel, what do you do? You buy duty-free,” Kinigama told a recent media briefing held in Colombo Port City last week. 

Highlighting the purchasing power of this target demographic, Kinigama noted a recent transaction where an Indian visitor purchased a US$ 10,000 M series Macallan, an item currently unavailable in their home country. To cater to this premium segment, CDF is aggressively expanding its brand portfolio at the 2,000-square-metre mall. In the second half of 2026, the facility will welcome flagship stores for Hugo Boss, Anta, Nike, and Montblanc. Currently, foreigners account for about 10 to 20 per cent of the store’s customer base, representing roughly 1 per cent of the Bandaranaike International Airport (BIA) traffic, a figure the operator expects to increase steadily.

The operation is set to be significantly bolstered by new regulatory amendments designed to enhance the downtown duty-free model. 

Under the proposed regulations, Sri Lankan citizens and residents will be eligible for duty-free shopping after every overseas trip, with the added flexibility of two allowed visits within a four-day post-arrival period. The current duty-free purchase allowance for arriving passengers remains at US$ 2,000. Kinigama strongly encouraged locals to utilise these enhanced allowances, noting that the true competition is not internal, but rather against massive hub airports in the region. “So I would encourage all Sri Lankans to shop in Sri Lanka, either at the airport or at Port City, provided that the choice, the price, the promotions are compatible with international standards,” he added.

Further enhancing customer convenience, the facility now permits departing passengers to purchase liquor products at duty-free prices prior to boarding. Additionally, CDF has introduced a seamless pre-order and collection service, allowing customers to place orders at the Port City store and collect their purchases at the BIA departure terminal. All transactions remain digitally verified and integrated with Sri Lanka Customs systems, ensuring the facility operates with strict regulatory compliance while elevating Sri Lanka’s position as a modern retail and tourism destination.