Cabinet clears amendments to Colombo Port City Act to boost investment climate

Cabinet has approved drafting amendments to the Colombo Port City Economic Commission Act No. 11 of 2021, aiming to restore investor confidence and strengthen the city’s position as a competitive international business and services hub.

The move follows the repeal of the Port City’s strategic business regulations in August, which had created uncertainty for investors relying on key incentives and exemptions. The proposed amendments are expected to address these gaps and introduce new provisions to streamline investment facilitation and governance.

The Colombo Port City, established as a special economic region under the 2021 Act, is central to the government’s strategy to attract foreign direct investment and enhance the country’s global ranking in ease of doing business.

According to the Department of Government Information, the Port City Economic Commission has already identified the legal changes required to achieve these goals. The Cabinet has approved President Anura Kumara Dissanayake’s proposal to instruct the Legal Draftsman to prepare the draft incorporating the newly identified provisions.

The latest amendments are intended to make the Port City more investor-friendly and competitive amid efforts to reposition Sri Lanka as a regional financial and commercial hub.