For Sri Lanka, India has already become the largest source market, overtaking China after the pandemic and with Port City Colombo it expects the strong momentum to continue.

Moneycontrol - The $15-billion Port City Colombo, a special economic zone (SEZ) in Sri Lanka, is placing India at the centre of its growth strategy. India which is the South Asian country's biggest outbound market can also become its biggest source of business travellers, MICE visitors and second-home buyers.

"Our target audience is India," Thulci Aluwihare, Deputy Managing Director, Port City Colombo, told Moneycontrol.

He expects annual Indian tourist arrivals to Sri Lanka to double from around 600,000 last year to 1.2 million by 2030.

"We have around 90 flights connecting India and Sri Lanka. We want to attract Indian tourists beyond tourism," he said.

Port City Colombo is a brand-new city development within an existing city. It is an extension of Colombo's current central business district, built on reclaimed land along the waterfront.

Aluwihare believes new attractions in Port City —including a two-kilometre beach, a yacht marina, water sports, South Asia's first downtown duty-free retail zone, convention facilities and an integrated entertainment district—will encourage longer stays. Currently, the average tourist spends about one-and-a-half days in Colombo.

Business travel is expected to be another major driver.

"We are now looking to attract more Indian IT companies and global capability centres (GCCs)."

He said India is the GCC capital of the world. "We believe Port City can serve as a resilient business continuity and disaster recovery location for Indian GCCs. We may not have India's scale, but we can complement India's ecosystem through smaller, specialised GCC operations."

Historically, Sri Lanka's biggest limitation has been infrastructure, Aluwihare said, adding that they are accelerating development of event infrastructure, including the air dome, which is expected to be operational by October-November. We already have several events planned.

"We are also exploring partnerships with organisations such as NASSCOM for off-site events and conferences."

Sporting events are another opportunity the project hopes to tap. Aluwihare cited the economic boost Sri Lanka received when it hosted a major India-Pakistan cricket fixture.

"When Sri Lanka successfully hosted the India-Pakistan match during the Asia Cup. That weekend delivered a major economic boost. Around 13 private jets landed, hotel prices surged significantly, and both Indian and Pakistani fans travelled in large numbers."

According to him, the integrated resort site within Port City is large enough to potentially accommodate a multi-purpose stadium, depending on the eventual developer. "Cricket could become another major attraction alongside entertainment and gaming."

Along with a tourism boost, Aluwihare estimates roughly one-quarter of the total investment—including businesses and real estate—to come from Indian investors and companies.

He added that international investors are also viewing Port City as a gateway to India. "One of the first questions investors from Southeast Asia ask us is whether Port City provides access to the Indian market."

"India's growth story is one we want to complement," Aluwihare said. "As Indian businesses come here, tourism, corporate travel and investment will naturally follow."