By: Staff Writer
October 19, Colombo (LNW): The $1.4 billion Port City Colombo reclamation project has now reached a defining moment with the completion of its first infrastructure phase, officials announced yesterday. This milestone marks the transformation of the 269-hectare artificial island into Sri Lanka’s most ambitious urban and economic development.
Phase 1 covers critical infrastructure links, including connection of electricity and water supply systems to the existing city grid and integration of wastewater drainage networks with the mainland.
“This milestone marks an essential step in the progress of Port City Colombo and ushers in the next stage of development and future investments,” said Harsha Amarasekera, Chairman of the Colombo Port City Economic Commission (CPCEC).
According to the CPCEC, the project has already benefited from an investment of around US $1.4 billion by developer China Harbour Engineering Company (CHEC) and its parent China Communications Construction Company (CCCC). These investments make Port City Colombo one of Sri Lanka’s largest foreign-direct-investment ventures to date.
Looking ahead, the overall investment value of the development is projected at up to US $20 billion when fully developed, featuring over 6.3 million m² of built-up space and housing a projected population of around 273,000.
Despite delays the project originally commenced land reclamation in 2014 and the finishing of this phase took longer than expecte government officials say the completion now arrives at a time of renewed investor confidence in Sri Lanka’s economy.
The Finance Ministry’s Secretary, Harshana Suriyapperuma, noted “while the completion of Phase 1 took longer than expected, it marks a defining opportunity for Sri Lanka to demonstrate its potential as a destination for better foreign investments, business, trade, tourism and lifestyle.”
Project Director, Udaya Nanayakkara (Retd Major General), said the master-plan emphasises sustainability and livability: a “walkable city” with reduced traffic emissions, a clear road hierarchy, and underground utility networks. The 12-kilometre internal road network will link the city’s northern and southern ends seamlessly, positioning the island as a central South Asian hub.
Now that Phase 1 is complete, the focus shifts to attracting anchor investors for commercial, residential and lifestyle developments within the Special Economic Zone (SEZ). Four major projects were recently granted “Primary Business of Strategic Importance” status, unlocking incentives and visa-facilitated investment into real-estate, finance, and tourism.
However, analysts caution that despite the projections, the bulk of future investment hinges on global economic conditions, domestic regulatory clarity, and delivering infrastructure on cost and schedule. With household incomes in Sri Lanka still under pressure, ensuring tangible yields from such mega-projects remains a challenge.
For now, Port City Colombo’s infrastructure milestone sets the stage for Sri Lanka’s next chapter one where reclaimed land, deep-water location and strategic connectivity are meant to converge into a high-end urban-lifestyle and business hub.
