Sri Lanka’s landmark urban development, Port City Colombo, has reached a major execution milestone as construction officially began on its first residential project. This marks a significant shift from preparatory regulatory work to active delivery of real estate within the Special Economic Zone (SEZ).
The Sri Lankan Cabinet has approved the resumption of the Lower Malwathu Oya multipurpose hydro power project, revealing a staggering 106% increase in costs since its initial approval in 2019.
The Cabinet of Ministers has approved a proposal to allocate 150 million rupees to the e-Court project, a national priority aimed at digitalizing Sri Lanka’s judiciary system to eliminate chronic delays and improve transparency.
Sri Lanka's construction sector continues its strong recovery, posting a 12.2% growth in the third quarter of 2025, according to the Department of Census and Statistics (DCS).
The government has decided to re-initiate the disposal process for a prime land parcel in Kollupitiya (Colombo 3), owned by the Urban Development Authority (UDA), for a mixed development project on a 99-year lease.
The Government of Sri Lanka has secured a $30 million loan from the International Development Association (IDA) of the World Bank Group to fund the first phase of the Secure, Affordable, and Sustainable Energy for Sri Lanka Project. The Financing Agreement was signed on December 3, 2025.
The Cabinet of Ministers has granted approval for the implementation of 16 major infrastructure projects across state universities in Sri Lanka. The initiative, proposed by the Prime Minister in her capacity as the Minister of Education, Higher Education, and Professional Education, aims to upgrade facilities and bring state universities up to international standards.
The government has allocated Rs. 6,500 million in the 2026 Budget to ensure the continuation of the 'Clean Sri Lanka' programme.
The Sri Lankan Cabinet has decided not to implement any new wind power projects on the northwestern coastal island of Mannar, except for three ongoing private sector projects, following continuous public protests.
Residents and environmental experts on Mannar Island are continuing their fight against unplanned development, particularly concerning the installation of wind power projects, which they argue are detrimental to the environment and causing loss of livelihood.
