Business

Colombo Port City SEZ seen as driving Sri Lanka’s growth

Published

2 years ago

2024/10/25

The Colombo Port City Special Economic Zone (SEZ) is rapidly establishing itself as a leading regional business hub in South Asia, offering a modern legal framework and a business-enabling environment designed for investors to thrive, a Colombo Port City press release said.

The release adds: ‘Positioned as a competitive alternative to established financial centres like Dubai and Singapore, Colombo Port City is attracting international businesses and injecting new energy into Sri Lanka’s economic landscape. Its strategic location and modern ecosystem provide a platform for growth and development, positioning Sri Lanka as a key player in the region.

‘Traditionally, international and Sri Lankan IT and BPO firms have favoured hubs like Dubai and Singapore due to their favourable conditions—such as the ability to pay employees in USD, tax breaks, political stability, and robust economies. Colombo Port City has recognized this and developed a regulatory framework and strategic incentives that mirror these advantages. It now stands as a compelling option for global businesses seeking to expand in South Asia, as well as a homegrown solution for Sri Lankan businesses looking to broaden their regional or global footprint.

‘The recent Colombo Port City banking regulations introduced, provide further assurance to investors by safeguarding capital inflows and outflows, ensuring a secure environment for business operations. This environment is designed to channel new foreign direct investments (FDI) into Sri Lanka, directly supporting the local economy and creating new avenues for growth.

‘Currently, the Colombo Port City Economic Commission (CPCEC) public registry lists 79 Authorized Persons (APs), including both primary and secondary investors. These registered APs include prominent global entities from India, the United Arab Emirates, Singapore, the United Kingdom, Norway, and the United States, underscoring the SEZ’s international appeal and its potential to become a regional hub across key service sectors. Additionally, over 100 companies are actively considering operations within the SEZ.

‘Unlike other zones in Sri Lanka governed by the Board of Investment (BOI), the Colombo Port City SEZ’s policies are uniquely tailored to link benefits directly to foreign earnings, export services, and new business ventures. This ensures that only companies genuinely committed to new investments can access the SEZ’s benefits, rather than simply relocating to exploit tax incentives. The SEZ’s competitive tax incentives and modern regulatory framework are designed to attract high-value FDI, promote innovation, and foster sustainable economic growth. By focusing on genuine new investment, Colombo Port City aligns its growth with Sri Lanka’s broader economic goals of driving innovation, entrepreneurship, and employment generation.

‘To maintain this focus on genuine investment, the CPCEC has established clear criteria within the SEZ’s legal framework. Secondary investor criteria must meet one of the following standards: a minimum global revenue of over USD 50 million, employment of at least 100 people within five years of operation, or a start-up valuation of at least USD 500,000 within five years from the date of receiving an AP license, or alternatively must demonstrate how their business will contribute to Sri Lanka’s economic and social development through innovation, knowledge transfer, research and development, or by fostering the creation of an international financial centre within the SEZ.

‘Investors are required to submit a detailed business plan to qualify for incentives, with annual reviews conducted by the CPCEC to ensure compliance with the set criteria. Should these standards not be met, the CPCEC has the authority to decline a license or renewals. This structured approach ensures that the development of Colombo Port City remains aligned with Sri Lanka’s broader economic goals, creating a dynamic and thriving business environment.

‘Colombo Port City presents a significant growth opportunity for both local and international investors seeking to expand their global services. With its emphasis on single window investment facilitation for the ease of doing business, attracting strategic investments, and fostering a modern and secure business environment, the SEZ is well-positioned to become South Asia’s premier financial and business hub.’

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Business

ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka

Published

5 hours ago

2026/10/2

Thilina Walpola

The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.

The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.

“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”

Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.

Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.

Business

USD 40.84m pipeline to secure aviation fuel supplies to BIA

Published

5 hours ago

2026/10/2

Thilina Walpola

By Ifham Nizam

The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.

Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.

‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.

The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.

The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.

Business

CSE activity up, turnover weak at Rs. 1.4 billion

Published

5 hours ago

2026/10/2

Thilina Walpola

By Hiran H Senewiratne

Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.

Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.

In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.

The Banking and manufacturing sector counters performed well. In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.

Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.

Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.