Srilanka, Oct. 8 -- Residential real estate developments in Colombo Port City currently benefit from a range of tax exemptions and incentives, which create a highly distortionary and unequal tax regime for real estate businesses operating elsewhere in Sri Lanka, the Advocata Institute warned.
Both previous regulations (Gazette No. 2343/60 of 4 August 2023) and recent regulations (Gazette No. 2454/62 of 20 September 2025) issued under the Colombo Port City framework provide a wide range of tax exemptions and incentives to qualifying businesses. All four companies currently registered with the Port City Commission as real estate developers are classified as Primary Businesses of Strategic Importance (PBSIs) and benefit from a variety of tax ...