{"id":157175,"date":"2026-07-07T14:45:31","date_gmt":"2026-07-07T21:45:31","guid":{"rendered":"https:\/\/www.lankaweb.com\/news\/items\/?p=157175"},"modified":"2026-07-07T14:45:31","modified_gmt":"2026-07-07T21:45:31","slug":"sovereignty-perception-and-investment-the-missing-piece-in-colombo-port-citys-strategy","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2026\/07\/07\/sovereignty-perception-and-investment-the-missing-piece-in-colombo-port-citys-strategy\/","title":{"rendered":"Sovereignty, Perception and Investment: The Missing Piece in Colombo Port City\u2019s Strategy"},"content":{"rendered":"

Dr Sarath Obeysekera\u00a0<\/strong><\/em><\/span><\/h2>\n\n\n

https:\/\/www.ft.lk\/front-page\/Port-City-mulls-sandbox-to-trial-labour-reforms\/44-794268<\/a><\/p>\n\n\n\n

This article raises a question
About the fact that many western and middles eastern has a per perception that  Chinese government or Chinese company owns or holds proxy for the whole land hence may be reluctant
More publicity should be given with a sovereign guarantee<\/p>\n\n\n\n

Note <\/p>\n\n\n\n

This article  highlights an issue that receives far less attention than labour law reforms. While regulatory flexibility is important, investor perception of ownership, sovereignty, and geopolitical risk can be an even greater determinant of investment decisions.<\/p>\n\n\n\n

Here is an expanded version of your argument that could form the basis of an opinion article.<\/p>\n\n\n\n

Beyond Labour Reforms: Colombo Port City Must Also Address the Perception Gap<\/strong><\/p>\n\n\n\n

The recent Daily FT<\/em> article discussing the proposal to use Colombo Port City as a regulatory sandbox for labour market reforms is a welcome development. Flexible employment regulations and policy certainty can undoubtedly improve Sri Lanka\u2019s competitiveness in attracting foreign investment.  <\/p>\n\n\n\n

However, there is another issue that deserves equal attention but is seldom discussed openly\u2014the international perception of Colombo Port City\u2019s ownership and governance.<\/p>\n\n\n\n

Many investors from Europe, North America and parts of the Middle East continue to believe that the entire Port City is effectively owned or controlled by a Chinese state entity. Whether this perception is accurate or not is less important than the fact that it exists and influences investment decisions.<\/p>\n\n\n\n

Global corporations, financial institutions and sovereign wealth funds carefully assess geopolitical risks before making long-term commitments. Some investors worry that future geopolitical tensions, sanctions, or strategic competition between major powers could affect investments located in projects perceived to be under Chinese control.<\/p>\n\n\n\n

The legal reality is quite different. Colombo Port City is part of the sovereign territory of Sri Lanka and is governed under Sri Lankan law through the Colombo Port City Economic Commission. Investors receive long-term leasehold rights and operate within a regulatory framework established by Parliament, not under foreign sovereignty. Recent amendments have further strengthened governance and ease of doing business.  <\/p>\n\n\n\n

Unfortunately, these facts are not sufficiently communicated to the international investment community.<\/p>\n\n\n\n

The Government, the Colombo Port City Economic Commission and the Board of Investment should therefore undertake a comprehensive international communication campaign.<\/p>\n\n\n\n

This campaign should clearly emphasise that:<\/p>\n\n\n\n