SRI LANKA. Singapore-based omnichannel retailer One World Duty Free and Port City Colombo have concluded an agreement to operate the first downtown duty free store in Sri Lanka.
The ambitious project was first flagged by The Moodie Davitt Report in a recent interview with One World Duty Free Founder & CEO Keira Zhang, which can be accessed here. She detailed her goals for the Sri Lankan business as well as for an exciting store opening planned in Singapore.
This week, One World Duty Free (ODF) and government entity the Colombo Port City Economic Commission took the latest step forward in their alliance.
At a ceremony held at the Colombo Port City Economic Commission’s office, Ms Zhang and Dr Priyath B. Wickrama, Director General & Commission Member of the Colombo Port City Economic Commission, ratified their commitment to a strategic partnership aimed at shaping Port City Colombo’s development.
The partnership was underscored with the formalisation of two key agreements: an Authorised Person Agreement between ODF and the Commission on 23 May; and a lease agreement between ODF and CHEC Port City Colombo Pvt Ltd (CPCC) on 22 May. These agreements lay the groundwork for ODF to transform Port City Colombo into a “global duty free retail hub”.
ODF is set to develop and operate a 1,250sq m duty free store at Port City Colombo, offering a blend of international brands spanning beauty, wellness, spirits & wines and fashion. It will be located within a 7,000sq m shopping complex, Port City Duty Free Mall. This is positioned close to international prestige hotels and casinos offering the opportunity to target a diverse and affluent customer base of tourists, expatriates and locals.
Construction of the ODF store is set to begin from mid-2023, with trading planned to kick off by year end. The partners said: “ODF Port City Colombo will offer travellers a purpose-built shopping environment enhanced by the company’s innovative approach to smart retail.”
Keira Zhang said: “In our partners at Port City Colombo, we recognise a level of ambition which is perfectly aligned with One World Duty Free’s game-changing approach to duty free retail. The opportunity to showcase our credentials on the world stage and contribute to the creation of a landmark destination in Asia is a key milestone in One World Duty Free’s journey of progressive expansion across Asia.”
Dr. Wickrama said: “In order to make our vision for Port City Colombo a reality, we have sought out best-in-class partners that can bring fresh thinking and innovation. One World Duty Free’s technology-led ethos and commitment to delivering memorable consumer experiences will play a critical role in ensuring we deliver a compelling retail offer to travellers from across the world and thus the Commission’s vision of creating Port City Colombo as a world-class touristic shopping destination.”
The project development anticipates a sustained resurgence in tourist arrivals following the COVID crisis. The partners said that Port City Colombo is set to accelerate Sri Lanka’s economic development “by creating a new gateway to South Asia through a range of state-of-the-art infrastructure, including commercial and residential buildings, recreational facilities, a financial district, and a modern transportation network”.
Developed in collaboration with the Government of Sri Lanka and CHEC Port City Colombo (Pvt) Ltd (CPCC) as a public-private partnership, Port City Colombo is Sri Lanka’s biggest FDI-funded development project to date.
The partners added: “With major investment plans for travel retail, entertainment, and leisure facilities in partnership with renowned international players, such as Singapore’s ODF, Port City Colombo is slated to become a prime tourism and shopping choice on par with landmark destinations such as Singapore and Dubai.
“Together, ODF and the Commission are charting a bold and innovative course for the future, reinforcing their shared vision of driving Port City Colombo’s ascent on the global stage. Both parties stand poised to redefine the economic future of Port City Colombo, taking it from a burgeoning commercial nucleus to a premier duty free retail hotspot.”
The approved facilities for Port City Colombo include a financial city, a marina, hotels and residential complexes and social infrastructure. Once complete, it is expected to have 6.3 million sq m of built-up space and an estimated population of 273,000.
The development has also been promoted extensively as “the best place to do business in South Asia” as the region’s first multi-currency, service-export Special Economic Zone.
With infrastructure development set for completion in Q3 2023, of the US$1.4 billion committed by the project company, US$1.2 billion has already been invested into Port City Colombo, and a further US$1.5 billion is expected to be invested during the vertical development phase, which is to commence shortly.
*Our original interview with One World Duty Free Founder Keira Zhang first appeared in The Moodie Davitt Magazine for May. Click here for access. 
