The Port City Colombo (PCC) project has moved well beyond a mere “critical juncture” it now presents a contrasting picture of early commercial traction paired with lingering infrastructure delivery gaps.
Official data for the first nine months of 2025 indicate substantial advances in tenancy and investment registrations, yet the Auditor‑General’s Department’s October 2024 audit for the year ended 31 December 2023 reveals several key infrastructure commitments remain incomplete and cost overruns persist.
The project’s primary foreign developer, China Harbour Engineering Company (CHEC, a subsidiary of China Communications Construction Company/CCCC), is doubling down commercial ambition: a July 2025 gazette confirmed that its subsidiary, IFC Colombo 1 (Pvt) Ltd, will invest approximately USD 142.7 million into real-estate development within the city.
According to project disclosures, by May 2025 roughly 80% of the leasable space in the Business Centre had already been leased to “Authorised Persons”.
A notable lease was signed in May 2025 when Swedish-based IGT 1 Lanka committed to two office buildings, covering more than 500 employees. Meanwhile, reports show over 100 companies were slated to begin operations in the Special Economic Zone (SEZ) as of October 2024.
Yet the audit flags structural concerns. Of 118 plots scheduled for completion by 16 September 2019, only 85 had received certificates by 30 September 2023 roughly 72%. Landscaping, scheduled to reach 100% by 9 March 2020, was only 77% complete by 30 November 2023.
The accompanying roads, bridges and tunnels, originally due 14 March 2020, were still more than half unfinished by September 2023. Perhaps most concerning: the temporary sewage solution had an initial cost estimate of Rs. 1,000 million but escalated to Rs. 3,700 million, with the permanent system of Rs. 2,900 million yet to commence the AGD treated the Rs. 3,700 million as a loss to the Government.
In February 2025 the Government extended the operational period of the Project-Management Unit for PCC until June 2027, implicitly acknowledging the ongoing delays. Mid-2025 also saw new regulations tightening strategic-business thresholds in the zone, signaling a regulatory recalibration just as commercial leasing begins to accelerate.
The bottom line: Port City’s commercial engine is revving, but its delivery chassis remains incomplete. If CHEC, government agencies and their partners can close out the infrastructure backlog by the revised 2027 deadline while keeping investor momentum, the project could still fulfil its aim of becoming a regional service hub.
Until then, the contrast between leasing wins and infrastructure gaps remains sharp, and the scrutiny from investors and auditors alike is unlikely to fade.
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