Port City Colombo aims to facilitate connections to the South Asian market through investment opportunities, international business environments, world-class infrastructure, and high-quality sustainable living.

The city will additionally encompass over 6.4 million square metres of new developments in residences, healthcare, education, entertainment, hotels, restaurants, retail, and commercial complexes.

[3][4][5] The modern Port City Colombo was based on a concept proposal submitted by China Harbour Engineering Company[6] The construction was set to begin in March 2011, but the project was put on hold due to several circumstances.

Construction of the Port City Colombo project was launched on 17 September 2014 by former Sri Lankan President Mahinda Rajapaksa and General Secretary of the Chinese Communist Party Xi Jinping.

[8] The Port City Colombo was suspended after the end of the Rajapaksa government in 2015 due to alleged claims related to the sovereignty of Sri Lanka and adverse environmental impacts.

[18] By December 2020, Sri Lankan conglomerate LOLC Holdings leased out five land parcels amounting to $200 million and signed an agreement with China Harbour Engineering for a mixed development project, with the investment value totaling $1 billion.

[20] Before land was reclaimed for the development of Port City Colombo, Environmental Impact Assessments (EIAs) were conducted to make sure the construction of the Special Economic Zone follows sustainable practices.

Port City Colombo is following eco-friendly infrastructure development practices by opting for sustainable design, renewable energy, and energy-efficient building standards.