Sri Lanka Unveils New Colombo Port Mega Project After $280 Million Deal Ends

COLOMBO (News 1st); The Sri Lanka Ports Authority (SLPA) has announced plans to develop a new logistics hub at the Port of Colombo under a Public-Private Partnership (PPP) model, following a decision not to proceed with an earlier joint venture project involving China Merchants Port Holdings Company Limited and Access Engineering PLC.

The previous project, known as the South Asia Commercial and Logistics Hub (SACLH), was established in 2023 with the objective of creating a modern logistics facility within the Port of Colombo. The venture included a 70 percent stake held by China Merchants Port Holdings, while the SLPA and Access Engineering each held 15 percent stakes.

The proposed development was valued at approximately USD 280 million and was designed to strengthen Colombo's position as a leading maritime and logistics centre in the region. However, after reviewing external factors, commercial considerations and shareholder interests, the parties decided not to move forward with the project.

According to the SLPA, shareholders will receive refunds of their equity contributions, with approximately USD 29.8 million to be distributed in line with their respective shareholdings, subject to regulatory requirements and operational expenses.

Despite the decision, the SLPA stressed that it remains committed to expanding logistics infrastructure at the Port of Colombo. The Authority will now pursue a new logistics hub through a competitive bidding process under a PPP framework.

The planned facility will be developed on a substantial land area within the port and is expected to support a broad range of logistics and value-added services. Officials say the project will help transform Colombo from primarily a container transshipment port into a fully integrated maritime and logistics hub serving international supply chains.

The SLPA said the new approach is expected to attract investment, increase private-sector participation, improve the use of port infrastructure and generate sustainable long-term revenue, while strengthening the competitiveness of the Port of Colombo in regional and global trade.

The Authority emphasized that the decision to discontinue the earlier venture does not signal a retreat from port development plans, but rather an opportunity to pursue a model that better aligns with Sri Lanka's long-term economic and commercial objectives. The SLPA reiterated its commitment to positioning the Port of Colombo as a leading maritime, transshipment and logistics hub in South Asia.