The Sri Lanka Ports Authority (SLPA) has confirmed that plans to develop modern logistics infrastructure at the Port of Colombo remain in place, despite the decision by shareholders to discontinue a previously proposed joint venture valued at approximately US$280 million.
In an official statement, the Ports Authority clarified that the cancellation of the earlier joint venture does not mean Sri Lanka is abandoning its plans to strengthen logistics infrastructure at the country's main commercial port.
Instead, the authority intends to pursue an alternative development strategy through a public-private partnership (PPP), with a new logistics hub to be developed following a competitive bidding process.
New logistics hub planned for Colombo Port
According to the SLPA, the proposed development will utilise a substantial area within the Port of Colombo to establish an integrated logistics facility capable of supporting various port-related and value-added logistics services.
The project is expected to strengthen the port's operational capabilities while expanding the range of services available to shipping companies, logistics providers and other businesses involved in international trade.
The Ports Authority explained that its long-term objective is to develop Colombo Port beyond its traditional role as a container transshipment centre.
The proposed infrastructure is intended to support the port's transformation into a broader regional maritime and logistics hub, capable of accommodating a wider range of supply-chain and commercial activities.
The SLPA emphasised that the decision to discontinue the previous joint venture represents a change in the development approach rather than a withdrawal from the project’s broader objectives.
Previous US$280 million joint venture discontinued
The earlier logistics hub project was planned through South Asia Commercial and Logistics Hub, a company established in 2023.
Under the proposed ownership structure, a wholly owned subsidiary of China Merchants Port Holdings Company Limited held a 70% stake, while the Sri Lanka Ports Authority and Access Engineering PLC each held a 15% stake.
The joint venture was intended to develop a modern logistics facility covering approximately 150,000 square metres within the Port of Colombo.
The facility was expected to strengthen the port's logistics capacity and support Sri Lanka's ambition to become a major regional maritime and supply-chain centre.
However, following a review of prevailing external conditions, commercial considerations and shareholder requirements, the partners decided not to proceed with the proposed joint venture.
The SLPA stated that the decision was made after taking these factors into account and assessing the project's commercial and strategic suitability.
Nearly US$29.8 million to be refunded to shareholders
As part of the discontinuation process, the Ports Authority confirmed that capital contributions made by the shareholders will be refunded.
The total amount involved is estimated at approximately US$29.8 million.
According to the SLPA, the repayments will be made in proportion to the respective ownership stakes of the shareholders, taking into consideration applicable regulatory requirements and operational expenses.
The authority has not specified an exact timeline for completing the refunds.
SLPA reaffirms long-term development plans
Despite the termination of the earlier joint venture, the SLPA reiterated its commitment to expanding Colombo Port's logistics infrastructure.
The authority said the proposed public-private partnership model would provide an alternative mechanism for attracting investment and developing modern logistics facilities through a competitive selection process.
The new approach is intended to align more closely with the port's long-term commercial and strategic objectives.
However, the SLPA has not yet announced a timeline for selecting a new development partner or commencing construction of the proposed facility.
The authority maintains that strengthening Colombo Port's role as a regional maritime and logistics hub remains a key objective of its development strategy.
