Sri Lanka faces potential investor exits as HSBC and China Merchants Port withdraw

Opposition Leader Sajith Premadasa has raised alarms regarding reports that the HSBC Global Service Centre may relocate its operations from Sri Lanka to the Philippines by December 2027. If confirmed, the move could result in the loss of approximately 3,000 direct jobs and 500 indirect jobs, posing a significant economic setback for the country.

Premadasa questioned the nation's investment climate, noting that Sri Lanka should be attracting foreign direct investment rather than losing major investors. These concerns follow the recent withdrawal of China Merchants Port Holdings from the South Asia Commercial and Logistics Hub (SACLH) project at the Port of Colombo.

The US$ 392 million logistics project was terminated due to implementation challenges and commercial considerations. As part of a settlement following the cancellation, the Sri Lanka Ports Authority (SLPA) has agreed to pay US$ 21.905 million to the project company.