Can Colombo Become the Dubai of the Indian Ocean?
- Zara Abeywardena
- Aug 22
- 3 min read

The notion that Colombo could one day rival Dubai is both ambitious and contentious. Yet, the comparison surfaces often among government officials, urban planners, foreign investors, and Sri Lankans abroad. It reflects both aspiration and frustration - a desire to see the island capital rise into a global commercial hub, and the reality of how far there is to go.
Colombo vs. Dubai: A Tale of Two Port Cities
Dubai’s transformation from a desert trading post into a glittering financial powerhouse was powered by oil wealth, bold leadership, and a state-backed vision to attract capital, talent, and influence. Colombo, in contrast, is emerging from a decade marked by economic crisis, political volatility, and post-conflict recovery. Still, there are parallels:
Shared Attributes:
Strategic Maritime Location: Both sit along vital trade routes. Colombo is one of the busiest ports in South Asia, serving as a key transshipment hub.
English-Speaking Workforce: Like Dubai, Colombo benefits from a highly literate, English-fluent talent base.
Regional Connectivity: SriLankan Airlines connects the island to the Middle East, Asia, and Europe, making it an easy regional stopover.
Ambitious Urban Development: Projects like Port City Colombo mirror Dubai’s early waterfront reclamation efforts, albeit at a smaller scale.
Pro-FDI Rhetoric: Both governments have made foreign direct investment a national priority, at least in rhetoric.
Yet, ambition is not enough.

What Holds Colombo Back
“Dubai succeeded because it created a system that international investors could trust,” says Rajeev Gunaratne, a Sri Lankan investment banker based in the UAE. “You can’t build a global city without legal certainty and financial freedom.”
Key challenges include:
Currency Instability: Fluctuating rupee values and capital controls discourage foreign capital inflows.
Policy Volatility: Investors cite inconsistent taxation, unclear land laws, and surprise regulation as risks.
Limited Wealth Density: While Dubai hosts hundreds of billionaires, Colombo is still building its HNW base.
Infrastructure Gaps: While improving, public transport, internet speed, and energy reliability remain inconsistent.
Bureaucracy and Corruption: Red tape continues to slow down business formation and foreign property investment.
Where Colombo Can Lead
Colombo does not need to be a replica of Dubai. It has an opportunity to carve out a distinct identity — smaller in scale, but smarter in design.
1. Port City Colombo - This $15 billion Chinese-backed development is Sri Lanka’s biggest bet on a Dubai-style leap. Spread across reclaimed land adjacent to the city centre, it promises luxury residences, casinos, business towers, and a special economic zone with its own legal and tax framework. If executed well - and if governance can remain transparent - Port City could become a magnet for South Asian capital seeking a non-India base.
2. Fintech and Blockchain - Colombo is already home to over 200 IT firms, with blockchain logistics, crypto custody services, and cross-border payment startups gaining traction. With regulatory clarity, Sri Lanka could become a sandbox for South Asian fintech.
3. Wellness and Hospitality Gateway - With the rise of global wellness tourism, Colombo can position itself as a medical and wellness gateway - a first-stop city offering Ayurvedic centres, dental tourism, and upscale wellness clinics before visitors move inland.
4. Global Education and Living -The presence of international schools like the Overseas School of Colombo, Lyceum, and British School, coupled with a growing international medical college sector, is drawing expatriate families seeking affordable but high-quality education.
5. Creative Capital for South AsiaSri Lanka’s fashion, design, and film industries - long overshadowed by India - are gaining confidence. Platforms like Colombo Fashion Week and the growing presence of global production crews are positioning the city as a creative production hub.

What Needs to Happen Next
Residency and Business Visa Overhaul: Clear, long-term residency options for entrepreneurs and skilled workers are essential. The Investor Visa program must be simplified and publicised globally.
Property Ownership for Foreigners: Legal clarity around land ownership, strata titles, and inheritance laws will be critical to unlocking foreign real estate investment.
Stable Monetary Policy: Investors want clarity on taxation, capital repatriation, and currency convertibility. Without these, Port City risks becoming a ghost town.
Global City Branding: Colombo lacks the sharp, consistent city branding that Dubai or Singapore deployed early on. A dedicated public-private initiative could help reposition Colombo internationally.

Voices from the Ground
“We don’t need skyscrapers to rival Dubai,” says Nadini Perera, a sustainability architect based in Colombo. “We need to be the capital of conscious living - a greener, more intentional version of what modern cities should be.”
Business consultant Dinesh Ratnayake agrees: “Colombo will never be a financial hub on Dubai’s scale. But it can be the lifestyle capital for South Asia — safe, connected, beautiful, and affordable.”
Colombo will never be Dubai - and that is its greatest strength. By not chasing vertical opulence and scale, Colombo has the opportunity to build a smarter, calmer, more sustainable city.
w, smart, international living.
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