CHEC Port City Colombo has secured a $300 million foreign direct investment commitment to advance Phase II of Port City Colombo, marking one of the first major inward investment pledges announced in 2026. Confirmed following the completion of all relevant regulatory approvals, the funding reinforces investor confidence in Sri Lanka’s economic recovery and long-term growth trajectory, while enabling the next stage of construction at the country’s largest urban development project.
Delivered on reclaimed land adjacent to the Port of Colombo, Port City Colombo has been designated Sri Lanka’s first multi-services Special Economic Zone. The Phase II capital will be directed toward the build-out of core infrastructure and utilities—systems that are critical to supporting future commercial activity and unlocking private sector participation across the development. According to Managing Director Xiong Hongfeng, the investment reflects a deliberate, long-term commitment to Sri Lanka, positioning the project as a generational undertaking rather than a short-term real estate play.
Phase II works will prioritize utilities, transport corridors, and enabling infrastructure, laying the groundwork for investment across sectors such as financial and professional services, logistics, technology, and lifestyle industries. Supported by a dedicated regulatory framework and a Single Window Investment Facilitation mechanism, Port City Colombo is being positioned as a gateway for globally oriented, high-value services. Construction activity linked to this phase is also expected to sustain employment across engineering, contracting, and associated service industries.
With regulatory processes now concluded, Phase II development is set to progress steadily through 2026. Beyond immediate construction impacts, the continued infusion of foreign capital is expected to deliver broader economic benefits by attracting international businesses, supporting skills transfer, and strengthening Sri Lanka’s overall FDI inflows. As work advances, Port City Colombo remains one of South Asia’s most closely watched urban and investment destinations.
Read more at Port City Colombo.