Dr Sarath Obeysekera

1. Background

Sri Lanka’s strategic location in the Indian Ocean, along major East–West shipping routes, offers an unmatched opportunity to position the country as a regional hub for offshore, marine, and energy-related services.

The newly developed Colombo Port City, adjacent to the existing Colombo Harbour, provides a world-class urban and business environment ideal for attracting international companies in engineering design, project management, and consultancy sectors.

However, compared to regional centers such as Chennai and Singapore, Sri Lanka’s international investment inflow into knowledge-based and offshore-support services remains low. A focused strategy is required to attract high-value foreign participation and to integrate with the emerging offshore development hub in Trincomalee.

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2. Vision

To transform Colombo Port City into a Regional Offshore Industry Management and Consultancy Hub, supporting the growth of Sri Lanka’s marine and offshore engineering sector centered around Trincomalee Port.

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3. Objectives

1. Attract Global Players such as KBR (UK), Worley (Australia), Technip Energies (France), and other PMC/EPCM and design consultancy companies to establish satellite or regional offices in Port City.
2. Provide management and engineering support for offshore and onshore industrial projects in Sri Lanka and the wider Indian Ocean region.
3. Integrate Colombo Port City’s high-end business ecosystem with Trincomalee’s industrial infrastructure to create a seamless national platform for offshore development.
4. Enhance local capacity by linking these foreign offices with Sri Lankan universities, vocational institutes, and design centers.

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4. Strategic Rationale

• Colombo Port City offers a tax-efficient, investor-friendly environment under a separate Special Economic Zone framework, ensuring transparency and protection for foreign investors.
• Direct expressway connectivity between Port City and Bandaranaike International Airport facilitates efficient international access.
• High-quality living accommodation and social infrastructure in the Colombo hinterland support relocation of international experts and families.
• Trincomalee, with deep-water port facilities and large industrial land availability, can serve as the operational nucleus for offshore fabrication, assembly, and marine support services.
• Together, Colombo Port City (management and design) and Trincomalee (industrial operations) can create a dual-core blue economy growth model for Sri Lanka.

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5. Proposed Actions

1. Establish a Port City Offshore Industry Promotion Unit” (PCOIPU) under the Ministry of Industries / BOI to coordinate investor engagement.
2. Conduct targeted investor missions to major engineering and consultancy hubs (London, Dubai, Singapore, Chennai).
3. Offer incentives such as tax holidays, 100% repatriation of profits, and long-term business leases within Port City.
4. Promote Public–Private Partnerships (PPPs) linking international firms with local companies in design, fabrication, and training.
5. Develop a digital platform to showcase investment-ready projects in Trincomalee, Galle, and Colombo.

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6. Expected Outcomes

• Creation of high-value employment opportunities for engineers, planners, and project managers.
• Development of Sri Lankan expertise in offshore energy, marine engineering, and digital design.
• Attraction of foreign direct investment (FDI) into both Port City and Trincomalee.
• Positioning Sri Lanka as a regional blue economy hub in the Indian Ocean.

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7. Conclusion

This initiative aligns with the Government of Sri Lanka’s objective to expand the Blue Economy and promote export-oriented industrial growth.

By linking Colombo Port City’s global business environment with Trincomalee’s industrial and offshore capacity, Sri Lanka can establish itself as a strategic destination for marine, offshore, and energy service investments in South Asia.

Regards

Dr Sarath Obeysekera