Colombo Port logistics hub project terminated by partners

The Sri Lanka Ports Authority (SLPA) and its partners have agreed to terminate the South Asia Commercial and Logistics Hub (SACLH) project, a planned logistics complex at the Port of Colombo. The joint venture, established in 2023, included China Merchants Port Holdings with a 70% stake, while the SLPA and Access Engineering PLC each held 15%.

Decision-makers cited external circumstances, commercial considerations, and the implementation environment as reasons for ending the venture. Under the settlement, the SLPA will pay approximately US$21.9 million to the project company, which will be distributed among shareholders according to their ownership interests. Other arrangements involve the distribution of approximately US$7.85 million in distributable cash held by the project company.

Despite the cancellation of this specific project, the SLPA confirmed its commitment to developing modern logistics infrastructure. The Authority plans to pursue a new logistics hub at the Port of Colombo through a Public–Private Partnership (PPP) model, with investors to be selected via a competitive bidding process to enhance port efficiency and regional standing.