SLPA confirms cancellation of USD 280 million Chinese-backed Colombo Port logistics project

The Sri Lanka Ports Authority (SLPA) has confirmed that the proposed USD 280 million logistics project at the Port of Colombo will not proceed, following an earlier announcement by the Chinese company involved in the joint venture.

In a statement issued today (19), the SLPA said the shareholders of South Asia Commercial and Logistics Hub (SACLH) had decided not to proceed with the project following a review of external circumstances, commercial considerations and their respective interests.

Established in 2023, the joint venture involved China Merchants Port Holdings Company Limited, through its wholly owned subsidiary, with a 70% stake, while the SLPA and Access Engineering PLC each held 15%.

The project was originally planned as a modern logistics facility with an investment of approximately USD 280 million and a floor capacity of 150,000 square metres.

The SLPA confirmed that approximately USD 29.8 million in equity contributions would be refunded to the three shareholders in proportion to their stakes, subject to regulatory requirements and operational expenses.

However, the Authority announced plans to develop a new logistics hub at the Port of Colombo through a Public–Private Partnership (PPP) model, with investors to be selected through a competitive bidding process.

The SLPA said the decision to discontinue the earlier joint venture would not affect its commitment to developing modern logistics infrastructure at the port.

It added that the alternative development model would aim to attract private investment, improve port efficiency and strengthen Colombo’s position as a regional maritime and logistics hub. (Newswire)

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