Guests lay the foundation for a marina commercial project at Port City Colombo, Sri Lanka, on Friday. GAYAN SAMEERA/XINHUA

The Colombo Port City celebrated a major milestone for Sri Lanka's business and investment climate on Friday as construction began on a marina commercial project.

During the groundbreaking ceremony, Sri Lanka's Foreign Minister Vijitha Herath highlighted the project's potential to position Sri Lanka as a new hot spot for regional tourism and investment.

The port city is an important platform for attracting foreign investment and enhancing the nation's international image, Herath said, adding the marina will fill the gap for high-end maritime services in South Asia, attracting more affluent tourists.

Chinese Ambassador to Sri Lanka Qi Zhenhong also attended the event.

Located near Colombo's central business district, the marina project is a flagship initiative regarded as a model of Belt and Road cooperation between China and Sri Lanka.

Covering an area of about 20,400 square meters, the project features state-of-the-art facilities, including sunset bars, seaside restaurants, retail outlets, and entertainment spaces, creating a vibrant and sophisticated environment for visitors.

The marina has the capacity to accommodate more than 200 mid-to-large-sized vessels, filling a critical infrastructure gap in the region, according to the Sri Lankan government.

Herath said the construction of the port city will promote cultural and economic cooperation between Sri Lanka and China and help Sri Lanka achieve its tourism revenue goals.

The marina commercial project is a joint initiative by China Harbour and Engineering Company Port City Colombo, Browns Investments, and LOLC Holdings.

"I believe Marina Development at Port City Colombo is a strong pillar of bilateral cooperation between Sri Lanka and China," said Indrananda Abeysekera, president of the Association for Sri Lanka-China Social and Cultural Cooperation.

"Through this, Sri Lanka will prove its suitability and potential for international economic, financial, trade, and tourism cooperation.

"This project will enhance not only the economic, trade and tourism relations between Sri Lanka and China, but also the friendship and cooperation between cultures and civilizations. It will also open up a new dimension in the development of new tourism sectors."

New impetus

Harsha Amarasekera, chairman of the Colombo Port City Economic Commission, said the port city will continue to inject new impetus into Sri Lanka's economy.

"The commission is proud to support this (marina) project and eagerly anticipates witnessing its transformative impact on Sri Lanka's tourism and maritime sectors," he said, "We are confident that this development will significantly contribute to establishing Colombo Port City as a regional business hub."

The commencement of the project will create more employment opportunities while attracting high-end international brands, boosting Sri Lanka's economic recovery, he added.

In August, Sri Lanka's Cabinet of Ministers approved the Colombo Marina Development as a strategic development venture under the Colombo Port City Economic Commission Act No 11 of 2021, reported local media Sri Lanka Biz.

During Friday's ceremony, Kapila Jayawardena, group managing director and CEO of LOLC Holdings, said that with a total investment of $120 million, the marina development is slated for completion by 2027.

"This project underscores Sri Lanka's potential to lead in luxury tourism while stimulating significant economic activity and positioning Colombo as a hub for maritime excellence," he added.

According to the Central Bank of Sri Lanka, the country earned about $3.17 billion from tourism last year, a 53.2 percent year-on-year increase. More than 2 million tourists visited Sri Lanka last year, up 38.1 percent compared with the previous year.

Tourism officials recently said the government is targeting $5 billion in tourism revenue this year by attracting 3 million tourists.