CONCEPT PAPER
Posted on March 20th, 2026
Draft Submitted by:Dr Sarath Obeysekera
Positioning Sri Lanka as a Regional Trade & Services Hub through a Public-Private Partnership (PPP) Model
1. Background & Rationale
Global economic and geopolitical shifts and looming world war 3 , are resulting in a gradual relocation of trade, logistics, and service sector operations from traditional hubs in the Middle East and other regions.
Sri Lanka, due to its strategic location along major Indian Ocean shipping routes, is uniquely positioned to capitalize on this transition.
The development of Colombo Port City and the underutilized potential of Trincomalee present a timely opportunity to reposition the country as a regional hub for industry, trade, and high-value services.
2. Strategic Vision
- Develop Trincomalee as a heavy industrial and energy hub
- Establish Colombo Port City as a Centre of Excellence” for:
- Financial services
- Oil & gas support services
- Maritime and logistics management
- IT and digital services
- Compete regionally with:
- Chennai
- Singapore
3. Policy Alignment
This proposal aligns with:
- National export development strategies
- Investment promotion policies
- Neutral foreign policy direction adopted by the Government under Ranil Wickremesinghe
- Economic recovery and foreign exchange generation priorities
4. Proposal
It is proposed that the Government:
- Approve in principle the development of a dual-hub strategy:
- Industrial Hub in Trincomalee
- Services Hub in Colombo Port City
- Adopt a Public-Private Partnership (PPP) model to:
- Accelerate infrastructure development
- Attract foreign direct investment (FDI)
- Ensure efficient management
- Mandate relevant agencies (EDB, BOI, Port City Commission) to:
- Promote Sri Lanka as a relocation destination
- Engage multinational corporations currently based in the Middle East and Asia
5. Immediate Actions Required
- Submission and approval by the Export Development Committee of Ministers (EDCM)
- Establishment of a high-level task force
- Fast-track regulatory approvals and investor facilitation mechanisms
- Launch of an international investment promotion campaign
6. Infrastructure Strategy
A key constraint is the time required for conventional construction.
Therefore, it is proposed to:
- Utilize prefabricated steel structures for rapid deployment
- Partner with international contractors experienced in modular construction
- Enable immediate occupation by global firms
This approach will significantly reduce lead time and capture the current opportunity window.
7. Target Sectors
- Oil & Gas (regional support services)
- Banking & Financial Services
- Maritime & Shipping Services
- Information Technology & Digital Services
- Logistics and Supply Chain Management
8. PPP Framework
The PPP model will include:
- Joint venture structures
- Long-term concessions
- Revenue-sharing mechanisms
- Risk-sharing arrangements between Government and private sector
Minister of finance and Policy Planning