Saturday Aug 01, 2026
Saturday Aug 01, 2026
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Dedicated hospitality plots and lagoon-front developments positioned for hotel and F&B projects
Indian firms can register as offshore companies and transact in Indian rupees within SEZ
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CHEC Port City Colombo Deputy Managing Director Thulci Aluwihare
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Port City Colombo is stepping up efforts to attract Indian investors by promoting its Special Economic Zone (SEZ), the ability to transact in Indian rupees and dedicated hospitality developments, as Sri Lanka seeks to position the project as a regional business gateway.
In an interview with The Economic Times’ ET HospitalityWorld, CHEC Port City Colombo Deputy Managing Director Thulci Aluwihare said the 2.7 sq. km reclamation project was designed to serve as a multi-services export zone rather than solely a real estate development, with India identified as its primary regional growth market.
The project comprises 91 hectares of common areas, a two-kilometre beach and a 90-hectare swimmable lagoon, alongside mixed-use developments, a yacht marina and a casino.
Aluwihare said the concept evolved after studies of regional real estate developments and SEZs highlighted Sri Lanka’s proximity to India’s economy.
“What the study revealed was that we are next to the largest growth market story, India. We should create a vibrant business district, not necessarily focusing on financial services, but offering a multi-services export zone,” he said.
He said Port City was intended to provide businesses with a platform to access South Asia, including India, adding that Indian rupees are recognised as legal tender within the project’s SEZ framework.
“For an Indian business, without even having to incorporate a new company in Sri Lanka, you can, with your existing company, seek registration as an offshore company and transact in INR. We are trying to seamlessly integrate into that larger economy,” Aluwihare said.
The developer is also targeting hospitality investors by earmarking four dedicated hospitality plots within the master plan.
Aluwihare said the 90-hectare swimmable lagoon would accommodate food and beverage outlets, restaurants and lifestyle retail developments, while the remainder of the project would comprise residential, mixed-use, office, recreation and hotel developments.
According to Aluwihare, the project was initially conceived as a waterfront real estate development before being repositioned as a business district and multi-services export zone aimed at supporting internationally traded services and attracting regional investment.
