Sri Lanka drops $280mn Colombo Port logistics JV with China Merchants, calls new PPP bids
ECONOMYNEXT – The Sri Lanka Ports Authority (SLPA) will seek a private partner through competitive bidding to build a new logistics hub at the Port of Colombo, after scrapping an earlier 280 million US dollar joint venture with China Merchants Port Holdings and Access Engineering PLC.
The earlier project was formed in 2023 under South Asia Commercial and Logistics Hub (SACLH), with China Merchants holding a 70 percent stake, while the SLPA and Access Engineering held 15 percent each.
The consortium planned to build a 150,000-square-metre modern logistics complex.
However, following a review of external circumstances, commercial considerations, and shareholder interests, the parties decided to discontinue the venture.
As part of the exit arrangement, approximately 29.8 million US dollars in equity contributions will be refunded to the three shareholders in proportion to their stakes.
The port authority emphasized that walking away from the joint venture does not mean it is abandoning logistics infrastructure.
“The decision not to proceed with the earlier joint venture does not represent a departure from its commitment to logistics infrastructure development. Rather, it provides an opportunity to pursue an alternative development model,” the SLPA said.
The authority will now launch an open competitive bidding process to set up the facility under a Public–Private Partnership (PPP) model, subject to relevant approvals.
The project will utilize a large land area inside the port to host integrated, value-added logistics services, bring in private investment, and earn long-term revenue.
Officials said the hub will help transform Colombo from purely a container transshipment terminal into a full maritime center, serving shipping lines, cargo owners, and logistics operators.
“The SLPA remains firmly committed to positioning the Port of Colombo as a leading maritime, transshipment and logistics hub in South Asia, while ensuring that future port development initiatives are commercially viable,” the SLPA said. (Colombo/Oct19/2026)