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The Colombo Port City Economic Commission (CPCEC) is a regulatory authority appointed by the Government of Sri Lanka to manage business operations within the Port City Colombo Area of Authority. Supported by CPCEC’s Single Window Investment Facilitation services, investors and business owners can tap into a wide range of benefits as they buy property, build start-ups, and grow their enterprises at Port City Colombo.
Port City Colombo (PCC) is a service-oriented Special Economic Zone (SEZ) with an investment value of more than $20 Billion. Strategically positioned at the centre of major East-West trading routes in the Indian Ocean, Port City Colombo is a regional hub boosting international connectivity.
Spanning 269 ha, the high-end development project features a state-of-the-art sustainable city, financial centre, and retail destination, making it a great location to live and do business. Port City Colombo provides a variety of high-end lifestyle offerings, such as luxury recreational spaces and world-class primary service facilities, including an international school and hospital.
The Colombo Port City Economic Commission (CPCEC) is a Single Window Investment Facilitator appointed under the Colombo Port City Economic Commission Act No.11 of 2021 to streamline business and regulatory operations at Port City Colombo. The Act sets down investor rules and regulations, creating a highly secure and incentivised environment for investments.
CPCEC’s regulations and policies establish an organised framework ensuring administrative processes such as business registrations and Authorised Person (AP) approvals run smoothly. The Commission is also responsible for processing licensure and granting licence renewals to companies operating within the zone.
To be a world-class service-oriented Special Economic Zone.
To facilitate the ease of doing business and boost sustainable economic growth by creating high-return business opportunities. CPCEC aims to create a smart city that adheres to environmental sustainability, positioning Port City Colombo as the regional investment destination of choice.
- Efficiency
- Trustworthiness
- Transparency
- Integrity
- Resilience
DINESH WEERAKKODY
Chairman
E.D.P. SOOSAIPILLAI
Acting Director General / Commission Member
MAHINDA SIRIWARDENA
Treasury Secretary/ Commission Member
REYAZ MIHULAR
Commissioner
SALIYA WICKRAMASURIYA
Lalith Wickramarathne
NIRANJAN ARULPRAGASAM
Reclamation of land commences.
Luxury Villas
Development Control Regulations (DCR) are approved by the Government of Sri Lanka (GoSL) and infrastructure development has started.
The 269 ha reclamation works and marine structures are completed.
The Colombo Port City Economic Commission Bill is enacted. $200 Million is invested in Port City Colombo for the Colombo International Financial Centre (CIFC), Marina, and Marina hotel
Phase 1 of infrastructure development is completed. This includes the beach, Central Park, Marina Retail and Entertainment facility, Luxury Villas, CIFC Phase I, Marina hotel, Convention and Exhibition Centre, International School, International Hospital, Iconic Hotel, and Marina apartments.
Waterfront and Marina Residences are set to be completed.
The Beach Resort is set to be completed.
Integrated Resort and CIFC Phase II is set to be completed, completing the Port City Colombo development project.
The Colombo Port City Special Economic Zone integrates cutting-edge sustainability measures from the ground up, creating a highly livable “Green SEZ”. The master-planned green city consists of eco-friendly infrastructure, green spaces, and developments built on sustainable design principles.
Non-motorised transport is promoted at Port City Colombo (PCC) and visitors can access highly connected pedestrian networks, including shaded walkways, green canopies, and integrated LRT systems, to travel within the zone.
PCC is an ideal location to purchase and build energy-efficient property, and developers are offered profitable incentives through the Development Control Regulations for adhering to green building standards or improving landscaping facilities.
An AP is an individual or an entity with a licence granted by the Colombo Port City Economic Commission (CPCEC), according to terms of the Colombo Port City Economic Commission Act No. 11 of 2021, to engage in business activities within the Port City Colombo Area of Authority.
An AP can be a natural person, a company (incorporated in Sri Lanka or overseas), a partnership, a limited partnership, or a foundation (registered in Sri Lanka or overseas).
Individuals interested in engaging in business in Port City Colombo must first become an AP. This can be done by submitting the application provided in Schedule I of the Colombo Port City Economic Commission and following the respective registration steps.
Please refer to Port City Colombo’s AP and BSI Set-Up Guide for information on the AP application process and associated regulations.
Individuals and entities directly related to an AP’s business can be its customers.
Yes, an AP who intends to do business in Sri Lanka with a citizen of Sri Lanka or a resident engaged in a Sri Lankan business outside the Port City Colombo Area of Authority can do so by submitting an application to the Colombo Port City Economic Commission (CPCEC) stating their requirements according to Subsection (1) of Section 37 of the CPCEC Act.
PCC aims to create a positive investment climate for companies with international customer networks and high innovation potential, which contribute to positioning the region as a world-class Special Economic Zone. The following businesses can be carried out within the Port City Colombo Area of Authority:
Please refer to the Colombo Port City Economic Commission Act and AP Regulations for more information on conducting business at PCC
To be an AP, the applicant must fill in the application provided in Schedule I of the Regulations for Registration, Licensing, Authorisation and Other Approvals of Authorised Persons No. 01 of 2022. The Colombo Port City Economic Commission reviews the application and, if all qualifying criteria are met, issues a licence granting the individual permission to engage in business in Port City Colombo.
For registering companies, a Certificate of Registration will be issued in addition to the licence. To obtain the Certificate of Registration, the company may need to fill in the application Form I as required under Part VII of the Colombo Port City Economic Commission Act No.11 of 2021.
Refer to the AP application process for more details.
What documents are needed to obtain an Authorised Person (AP) licence from the Colombo Port City Economic Commission? The application in Schedule I of the Regulations for Registration, Licensing, Authorisation and Other Approvals of Authorised Persons No. 01 of 2022 and the other supporting documents listed in the document. The receipt of payment for the non-refundable application processing fee must also be submitted.
Please refer to the AP application process for more information.
If the applicant satisfies the requirements of Authorised Persons Regulations, Authorised Persons Fee Regulations and Offshore Companies Regulations (if it is a company), the Colombo Port City Economic Commission will grant a licence to engage in business in and from Port City Colombo.
A company incorporated in Sri Lanka or overseas can register as an offshore company and engage in business in and from PCC.
For more information on registering an offshore business in PCC, please refer to Offshore Companies Regulations
Office spaces can be registered in Colombo’s Central Business District until PCC’s vertical infrastructure development is complete.
Yes. Please refer to the AP Regulations and other regulatory information that have been published.
Yes. The AP’s name, licence number, address, legal form, business sector, and BSI status (if applicable) are published on the Colombo Port City Economic Commission (CPCEC) public register.
View CPCEC’s current list of Authorised Persons on its public registry.
Yes. Please refer to the Authorised Person Regulations published on the Colombo Port City Economic Commission website.
Yes, CPCEC attests AP documentation of individuals and companies looking to operate in Port City Colombo. These document attestations are recognised by Sri Lankan Government authorities.
Changes can be done directly through the AP portal if the AP Licence hasn’t been issued yet. Changes required after the AP Licence has been issued can be submitted via email to applications@portcity.lk.
Please refer to the Authorised Person application process.
Yes, office spaces can be rented within PCC once the infrastructure has been completed.
No such requirements are currently applicable. Once the construction of office spaces is completed, businesses can discuss the terms and conditions for purchasing or leasing the necessary office space with the respective developer.
The interim provisions allow an AP to operate from a location outside the Port City Colombo Area of Authority until May 2026.
An Authorised Person who wishes to carry out their business operations from outside the Port City Colombo Area of Authority may need to state their business location as per Section 64 of the Colombo Port City Economic Commission Act.
The CPCEC Act has given allowance for up to 5 years from the Act, for APs registered, to work outside Port City Colombo, in designated areas till the Infrastructure is ready.
The Registrar of Companies issues a certificate of registration to the AP at the request of the Colombo Port City Economic Commission under the regulations of the Colombo Port City Economic Commission Act.
The company registration process is directly facilitated by the Colombo Port City Economic Commission (CPCEC) via the Authorised Person Portal on the CPCEC website. The Department of the Registrar of Companies of Sri Lanka acts as the company registrar and issues the certificate of registration to the Authorised Person at the request of the CPCEC.
An AP must start operations within six months after the licence is issued.
Please refer to the Authorised Person Regulations for more information.
No, they do not. However, if an AP does want to open a bank account for their business operations in PCC, please refer to the Foreign Exchange Regulations along with the directions issued by the Central bank for authorised dealers on Colombo Port City Investment Accounts for Investor and Investee.
Yes, a Sri Lankan can invest in PCC in Foreign Direct Investments (FDI).
Yes, Sri Lankan citizens can lease or purchase residential accommodation on a freehold basis within PCC. For more information, please refer to Section 39 of the Colombo Port City Economic Commission Act.
Yes, APs can receive goods and services from individuals and businesses based outside PCC.
Yes, since the Colombo Port City Special Economic Zone is an extension of the Colombo Business District and is considered a part of Sri Lanka.
No, Sri Lankans can use local currency to pay for retail facilities within PCC.
Yes. The AP can hold Sri Lankan Rupee accounts with a licensed commercial bank.
Yes. The lease can be paid in Sri Lankan Rupees according to the Colombo Port City Economic Commission’s (CPCEC) terms and conditions. If the lessor in turn transfers the leasehold rights to another person or company within five years and the payment for the same is received in foreign currency, the lessor must remit the sum received in foreign currency to a Resident Foreign Currency Account as prescribed in Section 39 of the CPCEC Act.
A BSI is an Authorised Person engaged in business in and from the Area of Authority of Colombo Port City Special Economic Zone and qualifies as a Primary or Secondary BSI.
What is a Primary Business of Strategic Importance (BSI)? To be designated as a Primary BSI, businesses should not already be a Secondary BSI, should lease and develop a plot of land and satisfy one of the following criteria:
Or
A Primary Business of Strategic Importance can select between one of the two following exemption or incentive schemes:
For more information, please refer to PCC’s BSI video and BSI Regulations.
To be designated as a Secondary BSI, businesses should not already be a Primary BSI and should engage in one of the following business activities:
They should also fulfil at least one of the below criteria:
For more information, please refer to PCC’s BSI video and BSI Regulations
What exemptions or incentives are available to a Business of Strategic Importance (BSI)? The Cabinet of Ministers approves BSI exemptions and incentives based on Colombo Port City Economic Commission recommendations as per schedule 2 of the CPCEC act for the following statutes.
1) The Inland Revenue Act, No. 24 of 2017
2) The Value Added Tax Act, No. 14 of 2002
3) The Finance Act, No. 11 of 2002
4) The Finance Act, No. 5 of 2005
5) The Excise (Special Provisions) Act, No. 13 of 1989
6) The Customs Ordinance (Chapter 235)
7) The Ports and Airports Development Levy Act, No. 18 of 2011
8) The Sri Lanka Export Development Act, No. 40 of 1979
9) The Betting and Gaming Levy Act, No. 40 of 1988
10) Termination of Employment of Workmen (Special Provisions) Act, No. 45 of 1971
11) The Entertainment Tax Ordinance (Chapter 267)
12) The Foreign Exchange Act, No. 12 of 2017
13) Casino Business (Regulation) Act, No. 17 of 2010
Tax exemptions differ based on whether a business is registered as a “Primary Business of Strategic Importance” or a “Secondary Business of Strategic Importance.”
Please refer to the BSI Regulations for more information.
An AP is eligible for tax concessions if they meet the legal criteria of Business of Strategic Importance.
This will be released in the upcoming Banking and Financial Services Regulations to be published in the gazette.
There are no regulations published by the Colombo Port City Economic Commission for tax residential status.
Once a business is approved as an AP, the Colombo Port City Economic Commission (CPCEC) will recommend the AP to MIP who will then recommend them to the Cabinet as per Section 53 of the CPCEC Act.
Depending on whether they are a Primary or Secondary Business of Strategic Importance (BSI), they are eligible for specific incentives or exemptions as stated in the Colombo Port City Economic Commission Act. Please refer to the BSI regulations in the BSI Video.
Tax exemptions are only granted to Businesses of Strategic Importance and employees of Authorised Persons.
Sri Lanka has tax treaties with over 40 countries in addition to other investor benefits. These treaties eliminate juridical double taxation and fiscal evasion in international trade relations.
View more information on Sri Lanka’s Double Tax Avoidance Treaties.
No. As stated in the BSI Regulations Extract 3 (a), although an Authorised Person’s parent company has an annual global revenue of more than $50 Million, it is only the registered office that qualifies for tax incentives once BSI status is received.
Yes, this will be assessed during the Authorised Person application process and afterwards on an ongoing basis.
There are no specific criteria for employees so a business can employ 100% foreign workers if needed. However, they should follow the Department of Immigration’s visa framework (Investor, Business, Employment, and Residence Visas), which applies to the staff and owners of businesses operating as Authorised Persons.
For more visa information, click here. (links to L1 - Visas)
Please refer to Schedule II of the Colombo Port City Economic Commission Act No.11 of 2021 for information on business incentives.
A BSI would be entitled to exemptions under Schedule II of the Colombo Port City Economic Commission Act.
To understand the types of taxes exempted, please refer to the gazetted issue of recently designated BSIs - Asiri Port City (Pvt) Ltd and Tiqri Software Pte Ltd.
Invoicing is exempt from VAT. The AP who obtains BSI status will be exempted from the Value Added Tax Act, No. 14 of 2002, which states that “all imports and local purchases of business-related goods and services as approved by the Colombo Port City Economic Commission shall be exempt from taxes specified under this Act”.
When a company with BSI status receives goods and services as specified in the Act, the vendor will issue VAT-exempt invoices.
No, the business will need to pay income tax for that revenue. Please refer to Section 37 of the Colombo Port City Economic Commission Act for more information.
If a Sri Lankan subsidiary receives Business of Strategic Importance status, it will be exempted from withholding tax when making dividend payments to its parent company overseas, or towards payment of services delivered by the same parent company.
The parent company operating overseas will not have to pay any tax on profits made by a subsidiary company in Port City Colombo.
No. However, a business may need to pay an application fee to register as an offshore company.
No, a minimum shareholding is not required.
No, PCC is an extension of the Colombo district and Sri Lankans visiting the zone would not require a visa to enter.
There are four types of visas available to foreign investors:
View our Visa webpage for more visa-related information. (links to L1 - Visas page)
The Banking and Financial Services Regulations are currently awaiting gazette publication by June 2024.
The designated foreign currencies within PCC are as follows:
For information on currencies approved for use at PCC, click here.
APs can open an account at any commercial bank in Sri Lanka. The Central Bank of Sri Lanka (CBSL) has directed all local banks to open Investor and Investee Accounts for APs who want to open their business operations account in Sri Lanka.
Please refer to the Foreign Exchange Regulations, along with the directions issued by the CBSL for authorised dealers on Colombo Port City Investment Accounts (CPCIA) for Investors and Investees. Any licensed commercial bank in Sri Lanka, including foreign banking operators such as HSBC and Standard Chartered, can open and maintain CPCIAs.
Yes, registered APs can open accounts at any bank licensed under the Colombo Port City Economic Commission Act No. 11 of 2021 or operating under the current Banking Act of Sri Lanka.
Banks for Authorised Persons will open Investor and Investee Accounts according to CBSL directions six and seven on Investor and Investee Accounts. View the full list of Licensed Commercial Banks in Sri Lanka.
Yes, APs can open an offshore bank account for investors after opening an AP Investor or Investee account for Port City Colombo. However, it must be noted that opening accounts with banks outside of Sri Lanka would be subject to any regulations applicable to the relevant bank.
Yes, APs may conduct their banking operations using offshore accounts without routing funds through Sri Lanka. The CPCEC does not mandate how APs carry out their banking.
The Colombo Port City Economic Commission has not issued any regulations in this regard.
No, it is unlikely that AP’s funds will be locked in Sri Lanka in the case of an economic crisis. As APs will be engaging in business using foreign currency with those outside of Sri Lanka, the Colombo Port City Economic Commission has requested that the Central Bank of Sri Lanka ensure that their foreign currency accounts will not be subject to any form of mandatory conversion or restrictions on repatriation. The upcoming Banking and Financial Services Regulations will address these concerns about repatriation, convertibility, and mandatory currency conversion in more detail.
Yes, an AP’s business can be denominated in USD and all other currencies approved by the Central Bank of Sri Lanka for financial reporting purposes.
There are currently no restrictions on capital and profit repatriation in Port City Colombo.
APs must refer to the prevailing laws in Sri Lanka and seek tax advice.
APs must seek tax advice.
Yes, APs need to file tax returns. For more information, please seek tax advice.
No, there are no regulations published by the Colombo Port City Economic Commission for residential tax status.
If an AP does not maintain the threshold(s) or breaches any regulations, the Colombo Port City Economic Commission (CPCEC) may cancel their licence, which will subsequently cancel the granted tax incentives and exemptions. The CPCEC may also introduce penalties in line with the Colombo Port City Economic Commission Act No. 11 of 2021, to which all APs will be bound.
Yes, there may be penalties for BSI that do not achieve the qualifying criteria annually. Companies registered as Authorised Persons (AP) must renew their licence every year by paying a renewal fee to the Colombo Port City Economic Commission (CPCEC) to validate their business plans and stated targets. If these targets are not achieved, the CPCEC may cancel the AP licence.
Yes, there is 100% legal foreign ownership of Land Investments in PCC under a 99-year lease.
No. Businesses within PCC do not have any restrictions on ownership. They can be 100% owned and operated by foreign nationals.
Yes, PCC has its own legal and regulatory framework separate from the rest of Sri Lanka and abides by the Colombo Port City Economic Commission Act No. 11 of 2021. All completed regulations are published on the Colombo Port City Economic Commission website under Laws and Regulations.
All employees whether Sri Lankans or non-Sri Lankans, shall be remunerated in designated foreign currency (FX Accepted by the Central Bank of Sri Lanka) other than Sri Lanka Rupees, and such income is exempted from personal income tax.
Yes, APs can employ both residents and non-residents of Sri Lanka.
The only legal framework applicable is that stated in the Colombo Port City Economic Commission Act No. 11 of 2021 for APs and Businesses of Strategic Importance. For any further information, please seek legal advice.
All Authorised Persons within PCC must abide by the existing employment termination laws and regulations in Sri Lanka. However, Businesses of Strategic Importance will be exempt as per Schedule II of the Termination of Employment of Workmen (Special Provisions) Act, No. 45 of 1971. For any further information, please seek legal advice.
Yes, as per the existing laws in Sri Lanka, APs must contribute to EPF, ETF, and gratuity, while Businesses of Strategic Importance are not required to do so.
The Colombo Port City Economic Commission is looking to address this in a manner where it is stated that EPF, ETF and Gratuity are not applicable to Businesses of Strategic Importance. Therefore, the existing laws will continue to apply.
No, there are no foreign employment restrictions in PCC and no mandatory percentage of Sri Lankan nationals to be employed.
Bank accounts held in Sri Lankan banks are subject to the regulations issued by the Central Bank of Sri Lanka.
The Right to Information (RTI) department of the Colombo Port City Economic Commission (CPCEC) is responsible for making CPCEC-related business, financial, and developmental information accessible to the public. Stay updated by contacting the RTI department for current information on CPCEC.
Dhanya Gunawardana
Head of Branding and Communication
dhanya@portcity.gov.lk
Director General