The 2026 amendments¹ to the Colombo Port City Economic Commission (CPCEC) Act mark an important shift in Sri Lanka’s economic landscape. By harmonising national policy with global standards, these revisions improve governance, streamline oversight, and provide the regulatory certainty required for large-scale international investment.

What do the 2026 CPCEC Act Amendments Unlock for Investors?

1. Structured Framework for Businesses of Strategic Importance (BSI)

The amendments introduce a clearer, more predictable statutory framework for identifying, approving, and monitoring BSI, providing investors with greater certainty and transparency for large-scale and strategic capital investments. Key improvements include:

• Minimum investment thresholds, employment creation targets, and applicable incentives and exemptions.

• Structured performance monitoring and post-implementation evaluation, reducing discretionary risk.
• Statutory due process safeguards.

Together, these reforms create a stable, accountable, and investor-friendly environment aligned with national economic priorities.

2. Streamlined Banking Operations under Central Bank of Sri Lanka (CBSL) Oversight

The amendments reinforce a single, coherent regulatory framework for banking activities within the Colombo Port City, placing supervisory oversight clearly with the CBSL. The Minister of Finance maintains licensing for these activities, with the concurrence of the CBSL. Key improvements include:

• Simplified approval process for CBSL-licensed banks to establish branches.
• Expanded scope of permitted offshore banking activities, supporting international financial services growth.
• Clear supervisory authority, eliminating regulatory overlap and uncertainty.

These reforms significantly improve ease of doing business for banks' activities within the Colombo Port City, ensuring a credible, well-regulated banking environment that meets international standards while preserving national regulatory oversight.

Continued Momentum in leasing Marketable Lands

Market confidence remains strong. In January 2026, two new land lease agreements were concluded, underscoring sustained demand and development momentum:

• ICC Port City (Private) Limited² – The Luxury Marina Residential Development will target high‑net‑worth individuals, expatriates, foreign professionals, investors and marina lifestyle seekers, contributing to the diversification of residential offerings within Colombo Port City.
• IFC Colombo 1 (Private) Limited³ – This Mixed‑Use Development project will integrate commercial, retail and residential components to support a globally competitive urban ecosystem within Colombo Port City.

These reforms propel the Government’s vision of Colombo Port City as a world-class Special Economic Zone, positioning it as a destination where global investors can invest, operate, and thrive within a secure environment.

Investors and developers are encouraged to visit www.portcitycolombo.gov.lk, for further information on the regulatory framework of Colombo Port City.

References

1. Colombo Port City Economic Commission Act Amendment -  https://documents.gov.lk/view/acts/2026/1/01-2026_E.pdf
2. ICC Port City (Private) Limited - BSI  https://www.documents.gov.lk/view/extra-gazettes/2025/7/2445-05_E.pdf
3. IFC COLOMBO 1 (PVT) LIMITED - BSI - https://www.documents.gov.lk/view/extra-gazettes/2025/7/2445-04_E.pdf