Sri Lanka Colombo Port City: A Comprehensive Overview

The Sri Lanka Colombo Port City is a massive development project that's transforming the country's landscape. It's a 269-hectare area reclaimed from the sea.

This project is expected to create a new economic hub for Sri Lanka, with a focus on finance, logistics, and tourism. It's also designed to provide a better quality of life for the people of Colombo.

The Port City is being developed by the China Harbour Engineering Company (CHEC), a state-owned Chinese company. It's a joint venture with the Sri Lankan government, which will own a 70% stake in the project.

The project is expected to be completed in several phases, with the first phase already underway.

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Port City Colombo is situated in the metropolis of Colombo, Sri Lanka, strategically positioned within South Asian trade routes.

The city will be built between the southern edge of the new Colombo South Port and the Fort Lighthouse.

A significant area of 269 ha (660 acres) of sea will be reclaimed for the master-planned city.

The construction of municipal facilities was completed by July 2020, marking a significant milestone in the development of the city.

Piling work for the nine bridges had begun by January 2019, with the Road Development Authority sending approval for the new road network.

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Port City Colombo is located in the metropolis of Colombo, Sri Lanka, which is positioned within South Asian trade routes.

The master-planned city is to be constructed between the southern edge of the new Colombo South Port and the Fort Lighthouse.

The total area of sea to be reclaimed is 269 ha (660 acres).

The basic infrastructure of this project was well underway by 2019.

The hydro structural construction was expected to be complete by the middle of 2019.

Piling work had begun for the nine bridges by January 2019.

The Road Development Authority had sent approval for the new road network by that time.

Construction of municipal facilities was completed by July 2020.

Port City Development is a massive project that spans 269 hectares and is expected to have some 6.3Mn m2 of build-up space by 2040. The city will be home to a population of 273,000 people.

The development is being built as an International ‘Service Oriented’ Special Economic Zone with a 99-year lease. This is a significant investment, with an initial investment of US$1.4bn and an expected overall investment of US$20bn when completed.

The Colombo Port City Economic Commission is the governing body of the project, and it aims to provide a business-friendly environment for investors. The SEZ includes tax incentives and exemptions of up to 25 years for Businesses of Strategic Importance (BSIs).

Here are some of the key benefits of investing in Port City Colombo:

The Colombo West Container Terminal is a significant development in the Port City of Colombo. It's expected to become operational in 2025.

A $700 million 35-year build-operate-transfer (BOT) agreement was signed in 2021 by Adani Ports & SEZ, along with local partners John Keells Holdings and the Sri Lanka Port Authority. This agreement has made way for the construction of the terminal.

The terminal will have a 20-meter deep annual capacity of 3.2 million containers. It's a joint project between Adani and John Keells, with the two companies owning an 85% stake in a 35-year build-operate-transfer deal.

The U.S. International Development Finance Corporation provided $553m in funding for the Adani-led project in 2023. This investment will help bring the terminal online.

Here's a breakdown of the key stakeholders involved in the Colombo West Container Terminal project:

Port City Colombo is a Special Economic Zone (SEZ) governed by the Colombo Port City Economic Commission (CPCEC). This means it's a business-friendly environment for investors.

The SEZ includes tax incentives and exemptions of up to 25 years for Businesses of Strategic Importance (BSIs). This is a significant advantage for companies looking to establish themselves in the area.

Transactions in 16 designated foreign currencies can be made without capital or exchange controls, making it easier for international businesses to operate. This is a big plus for companies that need to work with multiple currencies.

100% foreign ownership of businesses is allowed, giving companies full control over their operations. This can be beneficial for companies that want to maintain their independence.

100% capital and profit repatriation is also allowed, allowing companies to take their profits and investments back home. This can be a major advantage for companies that want to keep their finances separate from their local operations.

Flexible employee management practices are also available, including 0% personal income tax, remuneration in foreign currency, and preferential visas of 5–10 years for spouses and children. This can make it easier for companies to attract and retain top talent.

The Colombo Port City SEZ plans to carry out business operations in key service-oriented sectors such as IT/ITes, finance services, shipping logistics and maritime services, professional services, corporate headquarters operations, tourism, entertainment, and sustainable development.

Port City Colombo is a shining example of sustainable development in action. Environmental Impact Assessments (EIAs) were conducted before land was reclaimed to ensure the construction of the Special Economic Zone follows sustainable practices.

The city's master plan includes several green spaces across the plot, which will provide a breath of fresh air for residents and visitors alike. These green spaces will help to reduce the urban heat island effect and create a more livable environment.

Development Control Regulations incentivise developers who meet green building standards, encouraging a more sustainable approach to construction. This is a great step forward in reducing the city's carbon footprint.

Port City Colombo is opting for sustainable design, renewable energy, and energy-efficient building standards, which will reduce energy consumption and lower emissions. This is a forward-thinking approach that will benefit future generations.

The city will have a non-motorised transport system, encouraging walking and cycling through shaded walkways, making it a more pedestrian-friendly and environmentally friendly place to live. An integrated Light Rail Transit (LRT) system will also be in place, providing a convenient and sustainable way to get around the city.

Port City Colombo is a brand-new city development built as an International ‘Service Oriented’ Special Economic Zone with an initial investment of US$1.4bn and an expected US$20bn overall investment when completed. Spanning 269 ha, it is a sea reclamation project next to the existing Colombo Business District (CBD).

The Colombo Port City Economic Commission Act, No. 11 of 2021 was approved by the Government of Sri Lanka in May 2021, with a modern legal framework and attractive regulations focused on ease of doing business. This allows for a seamless and efficient experience for investors, businesses, and residents.

The Port City Colombo is estimated to have some 6.3Mn m2 of build-up space and a city population of 273,000 when fully developed by 2040.

Port City Colombo's land reclamation project is a massive undertaking, spanning 269 hectares of land.

The project was completed ahead of schedule, with the land reclamation finished within one year as of January 2019, three months ahead of the targeted completion.

The land reclamation process involved the government vesting all land titles within the Project Area with the Government of Sri Lanka.

This means that the government has full control over the land, which is a crucial aspect of the Port City Colombo project.

The government's role in the land reclamation process was instrumental in facilitating the project's progress, with the President of Sri Lanka issuing a Land Grant under the State Lands Ordinance (Chapter 454) to vest the land in the Colombo Port City Economic Commission.

Port City Colombo is a brand-new city development built as an International ‘Service Oriented’ Special Economic Zone with an initial investment of US$1.4bn and an expected overall investment of US$20bn when completed. It spans 269 ha and is a sea reclamation project next to the existing Colombo Business District (CBD).

The Colombo Port City Economic Commission Act, No. 11 of 2021 was approved by the Government of Sri Lanka in May 2021, with a modern legal framework and attractive regulations focused on ease of doing business. This act has vested all land within the Area of Authority in the Colombo Port City Economic Commission by way of a Land Grant issued by the President of Sri Lanka.

The Area of Authority of Port City Colombo consists of the boundaries set out in Schedule 1 of the Colombo Port City Economic Commission Act. Within this area, the Project Company has been given a 99-year lease.

The city is expected to have some 6.3Mn m2 of build-up space and a city population of 273,000 by 2040. This is a massive development that will likely transform the city's landscape and economy.

Here are some key features of the Colombo Port City Economic Commission:

• Administration, regulation, and control of businesses and operations within the Area of Authority

• Single Window Investment facilitator for the promotion of ease of doing business

• Responsible for granting incentives or exemptions to investors for businesses of strategic importance

Sri Lanka is strategically located at the gateway to South Asia, making it a key link between the East and the West. This unique positioning allows international companies to take advantage of a 2-hour overlap between western and east Asian markets.

The country's proximity to India is also a significant factor, with India expected to be the 3rd largest economy by 2030 and contributing nearly 70% of transshipment volume from Sri Lanka.

Colombo International Container Terminal (CICT) is the only deep-water terminal operator in South Asia, making it a crucial hub for trade and commerce.

Sri Lanka is connected to major global financial markets, with Dubai and Singapore just a 5-hour flight away. This connectivity also exposes Sri Lanka to China's modern trade route, the Belt and Road Initiative (BRI), which spans 60 countries with a combined population of over 3.2 billion.

Sri Lanka is the second most connected nation in South Asia, offering a unique opportunity for businesses and investors alike.

The Sri Lanka Ports Authority was created in 1980, marking the beginning of Colombo Port City's transformation into a major regional hub.

In the early 1980s, two container terminals were built, followed by three more in the early 1990s, making Colombo Port an attractive option for main line shipping.

The port's main channel was deepened to 15 meters, and it reached the one million mark for annual handling of container TEUs in 1996.

By 1997, container traffic had reached the 1.5 million TEUs mark, and the Oil Berth was opened.

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The Sri Lanka Ports Authority was created in 1980, marking a significant milestone in the country's maritime history.

The harbour underwent a major transformation to handle containerized cargo in the early 1980s.

Two container terminals were built by the end of the 1980s, and three more were added in the early 1990s.

This expansion and strategic location made the port more attractive to main line shipping than any other port in the region.

The main channel of the port was deepened to 15 meters, allowing for larger ships to dock.

The port reached the one million mark for annual handling of container TEUs in 1996, a testament to its growing importance.

Container traffic reached 1.5 million TEUs in 1997, and a new Oil Berth was opened that year.

A new container terminal was opened in 1998, and a new container yard began operation in 1999.

The Oluvil Lighthouse was commissioned in 1999, and the Oluvil Maritime Training Center also opened that year.

The South Asia Gateway Terminal began operations, and a new 50 thousand DWT berth was constructed.

In 2000, a third berth at Galle Regional Port was started, marking a significant expansion of the port's facilities.

The Peliyagoda Container Freight Station was opened, making it easier to handle containerized cargo.

A one-stop documentation center was opened, streamlining the documentation process for port users.

The second phase of the North Pier development started, further enhancing the port's infrastructure.

The Ashraff Quay, a multi-purpose facility, was inaugurated in 2002, catering to a variety of cargo types.

The Customer Service Center for LCL and breakbulk cargoes was opened in 2002, providing dedicated support for these types of cargo.

The Unity Container Terminal and the Colombo Port Maritime Museum opened in 2003, showcasing the port's rich history and capabilities.

In 2004, the port handled 2.2 million TEUs of containerized cargo, a significant milestone in its growth.

Container throughput continued to increase, reaching 2.45 million TEUs in 2005.

Today, the port handles 15% of transshipment cargo in South Asia, solidifying its position as a major regional hub.

However, in early 2009, the container throughput of Nhava Sheva Harbour surpassed that of Colombo, marking a temporary setback.

Colombo port regained its position in 2016, becoming the largest and busiest container port in South Asia.

The Marina of Colombo Port City has been open to the public since January 10, 2022.

Over 700,000 visitors arrived in the first quarter of 2022 to experience the new lifestyle in Colombo.

Here's a quick rundown of the key milestones in the Port City Colombo timeline:

Colombo Port City has several terminals, each with its own unique characteristics.

The Sri Lanka Ports Authority owns three terminals: Jaya Container Terminal, Unity Container Terminal, and Colombo East Container Terminal.

Jaya Container Terminal has 4 Container Main Berths & 2 Feeder Berths and is operational.

Unity Container Terminal has 2 Container Berths and is also operational.

The South Asia Gateway Terminals, on the other hand, is owned by John Keells Holdings and has 3 Container Berths. Other stakeholders include the Evergreen Group and APM Terminals.

Colombo International Container Terminals is owned by China Merchants Port and has 4 Container Berths, making it a deep water terminal.

The Colombo East Container Terminal is under construction and is owned by the Sri Lanka Ports Authority.

The Colombo West Container Terminal is under construction and is owned by Adani Ports & SEZ, with John Keells Holdings holding a 85% stake in a 35-year build-operate-transfer deal.

Colombo's Port City is a massive development project that's transforming the city's coastline. The Port City Colombo is a key part of this project.

The development includes a marina, which will be a major hub for luxury yachts and boats. This will not only attract tourists but also provide a new revenue stream for the city.

Here are some of the key features of the Port City Colombo:

The project also includes a beach area, which will be a popular spot for locals and tourists alike. The beach will be a great place to relax and enjoy the sun, sand, and sea.

The development is also progressing rapidly, with regular updates on the project's progress.