Port City Colombo says 2026 Act amendments will boost investor clarity, ease of doing business

The 2026 amendments to the Colombo Port City Economic Commission (CPCEC) Act mark a shift in Sri Lanka’s regulatory framework for the Colombo Port City special economic zone, aimed at improving governance, streamlining oversight and providing greater certainty for large-scale international investment, Port City Colombo said.

“The 2026 amendments to the Colombo Port City Economic Commission Act mark an important shift in Sri Lanka’s economic landscape. The revisions aim to “improve governance, streamline oversight, and provide the regulatory certainty required for large-scale international investment,” Port City Colombo said in a statement yesterday.

A key change under the amendments is the introduction of a clearer statutory framework for identifying, approving and monitoring Businesses of Strategic Importance (BSI). Port City Colombo said the reforms include minimum investment thresholds, employment creation targets and applicable incentives, alongside structured performance monitoring and post-implementation evaluation. “These reforms create a stable, accountable, and investor-friendly environment aligned with national economic priorities,” it said.

The amendments also reinforce a single regulatory framework for banking operations within the Colombo Port City, placing supervisory oversight under the Central Bank of Sri Lanka. Port City Colombo said the updated provisions simplify the approval process for licensed banks to establish branches and expand the scope of permitted offshore banking activities.

The reforms are intended to ensure “a credible, well-regulated banking environment that meets international standards while preserving national regulatory oversight”.

The legislative revisions come as leasing activity within the Port City continues. Port City Colombo said two new land lease agreements were concluded in January 2026, reflecting sustained demand.

ICC Port City (Private) Limited has signed on for a luxury marina residential development targeting high-net-worth individuals, expatriates and foreign professionals, while IFC Colombo 1 (Private) Limited will undertake a mixed-use development integrating commercial, retail and residential components.

Port City Colombo said the amendments support the government’s vision of positioning Colombo Port City as “a world-class Special Economic Zone,” and a destination where global investors can “invest, operate, and thrive within a secure environment.”

The CPCEC, established under Act No. 11 of 2021, is the government authority responsible for regulating businesses and operations within the Port City area and serves as the single-window investment facilitator for the zone.