Today, in the 21st century, perhaps the most ambitious vision of global connectivity can be seen in this, the Belt and Road Initiative. When the BRI was launched in 2013, it was more than just a network of trade routes-it was to be an integrated Asia, connecting not only goods and services but people, culture, and economies. 

Over the last decade, the BRI has mobilized over US$1 trillion worth of construction contracts and investments across approximately 150 countries. On such a large scale, connectivity reconfigures trade, industry, and society. 

Yet, when such an ambitious endeavor is pursued, both opportunities and challenges arise concurrently. Sri Lanka is a strategically positioned island in the Indian Ocean, and it provides a good illustration of how the BRI works in real life through its two iconic projects: Colombo Port City and Hambantota Port. In analyzing these two cases, we will consider the important role international investment law plays in shaping, constraining, and protecting such transformative projects.

Colombo Port City represents a landmark attempt in securing high-value segments of the global economy. Its location is ideal: poised to benefit from the rapid development of regional economies like India, Indonesia, and other South Asian markets. Connectivity for this project can be understood in two dimensions:

Hard connectivity: Refers to the physical infrastructure of port facilities, reclaimed land, and urban development that facilitates the flow of goods, services, and people.

Soft connectivity: the legal and regulatory frameworks ensuring investor confidence, compliance with international standards, and integration with the existing global mechanisms, including international investment law.

In Sri Lanka, these aspects were formally addressed: the Port City Commission Act provided a clear legal framework, and construction milestones were met on schedule, ensuring operational readiness. However, despite these achievements, the project faced limitations in attracting high-quality, global investors, which has shown that strong legal and physical frameworks do not solely guarantee investment success; localization, market incentives, and integration with regional economies are equally important.

The Hambantota Port, on the southern coast of Sri Lanka, illustrates how strategic positioning along trade routes within the globe can make a difference in connectivity. In hard connectivity terms, the different infrastructure components of the port container handling facilities, roll-on/roll-off services, and integration with highways and expressways link Sri Lanka effectively with the greater BRI network.

From a soft connectivity perspective, international legal guarantees were essential: a 99-year lease to China Merchants Port Holdings created investor confidence in conformity with international investment norms and treaties. Such legal clarity or security has allowed this port to attract investment, illustrating how infrastructure alone is not enough; credible legal protection is needed to garner and retain global economic opportunity.

Both projects illustrate the inseparable link between connectivity and law. BRI investments operate under a patchwork of bilateral investment treaties, arbitration clauses, and regulatory frameworks. The latter mechanisms offer enforceable legal recourse and protect investors from political and regulatory risks. In the Sri Lankan context, legal frameworks such as the Port City Commission Act, besides international arbitration clauses, have played an important role in sending out commitment and reliability signals. They clearly show how international investment law underpins investor confidence to make sure infrastructure projects are not only physically built but are actually capable of attracting good-quality and sustainable investments.

The Belt and Road Initiative is but a testament to the transformation that connectivity can bring about-not only in trade and infrastructure but even in shaping legal and economic ecosystems. The Colombo Port City and Hambantota Port illustrate both the opportunities and challenges of such ambitious projects, therefore, underscoring the dual importance of hard and soft connectivity. 

As we go forward, the message comes through with crystal clarity: connectivity is less about kilometers of road, number of ports built, or containers moved. Real connectivity is about the strength of the finding synergies between soft and hard connectivity, including systems-legal, regulatory, and infrastructural-that actually support investment, integration, and the ability of nations to capture high-value segments of the global economy.  

Author: Yasiru Ranaraja, Founding Director of BRISL

Source: Speech at the 2025 Belt and Road Think Tank Cooperation Forum

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