Tax incentives for Port City Colombo have been revised. New regulations (No. 1 of 2025) will take effect in September 2025.
On September 20, 2025, the Sri Lankan government published the “Port City Colombo Rule No. 1 of 2025” in Gazette No. 2454/62, repealing and replacing the previous rule (No. 2 of 2023) from 2023. This revision aligns with the IMF’s fiscal reform guidelines and revises the scope, duration, and conditions of tax incentives.
Under the new rule, entities designated as Primary BSIs (Strategically Important Businesses) can receive a full exemption from corporate tax for up to 15 years. While this is a change from the previous rule’s “25-year exemption + 10-year 50% reduction,” key incentives such as 0% personal income tax, 100% foreign ownership, and preferential tariff treatment remain.
Investment requirements have also been revised, with Category A now requiring a minimum investment of $100 million and over 300 employees. The rule is valid for five years from its implementation date, and the incentives are non-negotiable and non-renewable. For detailed information on the system, please check the latest updates. Our organization offers free individual investment consultations.
Source: Port City Colombo Economic Committee Gazette No. 2454/62 (September 2025)