Colombo Port City Special Economic Zone

The Colombo Port City Special Economic Zone provides diverse opportunities and benefits to investors. With the Colombo Port City Economic Commission (CPCEC) serving as a Single Window Investment Facilitator, the zone promotes regional economic growth through a comprehensive regulatory framework and investor-friendly incentives.

about
0%

Personal

Income Tax

Authorised Persons (APs) in Port City Colombo are exempt from personal tax on their employment income if earning in foreign currency.

100%

Capital and Profit

Repatriation

APs can transfer foreign-owned profits and offshore capital back to their home country without any restrictions.

100%

Foreign

Ownership

Foreign nationals can have 100% ownership of business and property assets and are protected by legal and regulatory safety nets.

16

Designated Foreign Currencies

for Transactions

Freely transact in 16 designated foreign currencies using Port City Colombo's investment-specific accounts.

5-10

Year Preferential

Visa

Applicants for Investor, Business, Employment and Resident Visas can obtain a 5-10 year preferential visa for their spouse and children.

25+

Years of Tax

Exemptions

APs who register as a Business of Strategic Importance are entitled to 25-year tax exemptions and a subsequent 50% cut on all taxes for 10 years.

Port City Colombo (PCC) promotes a competitive regulatory environment, boosting the export of services and capital inflows.

The Colombo Port City Economic Commission’s (CPCEC) Single Window Investment Facilitator services streamlining business operations in the South Asian region.

With future-ready infrastructure, PCC is one of the most sustainable cities in the region.

PCC has access to a highly-skilled talent pool across multiple industries, supported by versatile labour laws.

CPCEC provides strong investment protection through a dedicated International Commercial Dispute Resolution Centre.

Port City Colombo allows employers to pay employees in designated foreign currencies.

Investing as a Business

Businesses of Strategic Importance

  • Businesses of Strategic Importance (BSIs) are businesses that qualify for exemptions or incentives within the Colombo Port City Special Economic Zone, some of which are mentioned below. For more information, you can refer to the BSI regulations, the explainer video, and the investor deck.

  • Exemption from tax

    BSIs will be eligible for various tax exemptions and concessions. Depending on selection criteria, primary BSIs can have concessions for up to 35 years and secondary BSIs can enjoy concessions for 25 years. This remains valid until August 2025.

  • Exemption from withholding and dividend taxes

    BSIs will have their withholding and dividend taxes waived, minimising transaction costs and increasing investor returns.

  • Exemption from employment income tax

    BSI employees within Port City Colombo will be remunerated in foreign currency by the Central Bank of Sri Lanka and exempted from personal income tax.

  • Concessions for import tariffs and VAT

    BSIs will be exempted from import tariffs and Value Added Tax (VAT) on development costs.

Economically Ring-Fenced Area

Port City Colombo operates independently from the Sri Lankan financial system, ensuring strong investor protection. Additionally, Authorised Persons are exempt from any form of mandatory conversion or restrictions on repatriations, as outlined in the Banking and Financial Regulations gazette. Other key features include:

Foreign currency transactions

  • Fluid foreign exchange controls make transactions easier and more flexible.

Modern regulations compliant with international standards

  • Secure transactions and regulations that comply with the Anti Money Laundering (AML) and Combating the Financing of Terrorism (CFT) best practices.
  • Opens opportunities for growth in new markets and reduces the risk associated with depending on a single source of capital.
  • Full capital and profit repatriation with fluid tax policies.

Investing as an Individual

Port City Colombo provides several opportunities for individuals looking to invest personally in the Special Economic Zone. Entrepreneurs can register as Authorised Persons to take advantage of various incentives while those seeking residential living can enjoy world-class amenities, infrastructure, and hospitality services.

Authorised Persons

An Authorised Person (AP) is an individual or entity authorised by the Colombo Port City Economic Commission (CPCEC) to engage in business activities within Port City Colombo. Benefits of being an AP include:

  • Foreign ownership

    APs can enjoy 100% foreign ownership within Port City Colombo, allowing them to independently manage their investment.

  • Unrestricted capital and profit repatriation

    APs have complete control of their funds and can transfer any earnings from PCC back to their home country.

  • Extended residency benefits

    APs can request preferential visas for their spouses and children, which last for 5-10 years, fostering long-term residency for investors and their families.

Single Window Investment Facilitation

Colombo Port City Economic Commission

  • The Colombo Port City Economic Commission (CPCEC) is entrusted and authorised by the Colombo Port City Economic Commission Act No. 11 of 2021, with the administration, regulation, and control of all matters connected to businesses and other operations. A few of the ways CPCEC promotes the ease of doing business include:

  • The Investor Protection clause

    The CPCEC is not allowed to alter or withhold any registration, licence, authorisation, permit, or other approval issued or concession granted in any manner that is detrimental to the interest of the investor.

  • The Economic Equilibrium Clause

    In case an Authorised Person incurs an increase in operating expenses due to legal requirements, the CPCEC may adjust the exemptions and incentives to cover the increased operating expenses.

  • Streamlined approvals

    The CPCEC provides a streamlined approval process for planning permits and other necessary clearances required within PCC, simplifying procedures and saving time.

  • International Commercial Dispute Resolution Centre

    The CPCEC gives investors access to the International Commercial Dispute Resolution Centre, an internationally reputed operator with experienced personnel, where conflicts within PCC can be resolved.

Investor Protection

Invest securely

Enjoy built-in investor protection mechanisms through laws and contracts

  • Registrations, licences, authorisations, permits, or approvals may not be discontinued or amended to negatively affect investors.
  • Stabilisation/ Economic Equilibrium Clause protects Authorised Persons from negative effects caused by changes in laws. If an Authorised Person increases operating expenses due to legal requirements, the Commission may adjust the exemptions to cover additional costs.

Experience Port City Colombo’s strong commitment to investment protection

  • Sri Lanka has 25 active Bilateral Investment Treaties and five other Treaties with Investment Provisions.
  • International Investment Agreements provide foreign investment protection against the appropriation of assets through Fair and Equitable Treatment principles.
  • Port City Colombo adopts expert-led, internationally accepted procedures for dispute resolution headed by the International Commercial Dispute Resolution Centre.