Port City Colombo secures a $300 million FDI commitment for Phase II development, reinforcing investor confidence in Sri Lanka’s long-term growth
CHEC Port City Colombo has confirmed a $300 million foreign direct investment commitment to advance Phase II of the Port City Colombo development, reinforcing investor confidence in Sri Lanka’s economic recovery and long-term growth outlook.
The funding commitment was announced following the completion of all relevant regulatory approvals and marks one of the first major inward investment pledges of 2026.
It enables the next stage of construction at Sri Lanka’s largest urban development project, which is being delivered on reclaimed land adjacent to the Port of Colombo.
The capital injection will be channelled directly into Phase II works, focusing on the continued build-out of core infrastructure and utilities across the development.
These systems are critical to supporting commercial activity within the project, which has been designated as Sri Lanka’s first multi-services Special Economic Zone.
The $300 million commitment reflects the long-term investment strategy of CHEC Port City Colombo (Pvt) Ltd, the primary developer of the project.
The company has consistently reiterated that the development is being delivered as a multi-decade initiative rather than a short-term real estate venture.
Managing Director Xiong Hongfeng commented that the Phase II funding represents “a clear and deliberate statement of our long-term commitment to Sri Lanka”, adding that the company views Port City Colombo as a generational project linked to the country’s future growth prospects.
According to Xiong, the decision to continue deploying capital through FDI reflects confidence in Sri Lanka’s economic direction and in the role the development will play in supporting investment, enterprise creation and employment over the coming years.
Phase II development will prioritise utilities, transport corridors, and enabling infrastructure within Port City Colombo, creating the foundations required for accelerated private sector participation.
Once completed, these assets are expected to facilitate new investment activity across financial services, logistics, professional services, technology, and lifestyle sectors.
The project is positioned as a gateway for globally oriented, high-value services, supported by a dedicated regulatory framework and a Single Window Investment Facilitation mechanism.
Construction activity linked to Phase II is also expected to generate sustained employment across engineering, contracting, and service industries.
CHEC Port City Colombo stated that the continued infusion of foreign capital strengthens Sri Lanka’s overall FDI inflows at a time when the country is seeking to broaden its investment base and diversify sources of economic growth.
The Phase II commitment builds on earlier development stages and reflects the developer’s intention to see the project through to full completion.
Beyond direct construction activity, the development is expected to generate longer-term spill-over benefits by attracting international businesses, supporting skills transfer, and encouraging private sector-led growth.
With regulatory processes now concluded, work on the next phase is expected to progress steadily through 2026, maintaining Port City Colombo’s role as one of the most closely watched investment destinations in South Asia.
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