As Sri Lanka’s economy and hospitality sector gather momentum, Port City Colombo is positioning itself as a strategic gateway for Indian hoteliers and restaurateurs. Deputy managing director Thulci Aluwihare tells ET HospitalityWorld how the 2.7 sq km reclamation, featuring a 90-hectare swimmable lagoon and dedicated hospitality plots, is enabling Indian firms to register offshore and transact in rupees within its special economic zone framework.
With the economy and the hospitality industry on a growth path, Sri Lanka has been looking to India not only for support by way of visitors but also as potential investors in new projects. In this connection, Thulci Aluwihare, Deputy Managing Director of CHEC, Port City Colombo, (Pvt) Ltd, was in India recently and spoke with ET Hospitality World about the potential of his company and their reclamation project on the Colombo beachfront for Indian hotel and restaurant companies. The following is an excerpt of the interaction.portcitycolombo+2
The Port City Colombo project is a 2.7-square-kilometre reclamation aimed at creating a business district and multi-service export zone. The project includes 91 hectares of common areas, a 2-kilometre beach, and a 90-hectare swimmable lagoon. It targets Indian investors by allowing transactions in Indian rupees and offering a special economic zone (SEZ) with mixed-use developments. The project features a dedicated yacht marina and a casino, aiming to attract regional and international businesses and tourists.
“It was initially a pure real estate development project. While we were undertaking the reclamation, the Government of Sri Lanka was also brainstorming to see whether it could be something beyond just a real estate project, not only for Sri Lanka but for the rest of the region,” Aluwihare said.
They then travelled across the region and conducted a study of all the important real estate development and SEZ projects.
“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. We do not have an export zone; we are a light manufacturing DOI zone, but close to 60 per cent of our GDP is from exports, and we wanted to see whether people who wish to access South Asia could utilise this as a platform, even to access India. That is why, in our entire SEZ structure, the Indian rupee is legal tender,” he said.
Speaking of opportunities for the hospitality industry, Aluwihare said,
“The entire project has 90 hectares of swimmable lagoon, along which they plan to have F&B offerings, restaurants and lifestyle stores. They have dedicated four hospitality plots within the master plan. The rest of the project comprises residential, mixed-use, office, recreation and hotels.”
“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,” he added.
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