The Sri Lanka Ports Authority (SLPA) has decided to develop a new logistics hub within the Port of Colombo under a Public–Private Partnership (PPP) model, following the decision not to proceed with a previously proposed joint venture.
The earlier project, known as South Asia Commercial and Logistics Hub (SACLH), was established in 2023 with the participation of China Merchants Port Holdings Company Limited, the SLPA and Access Engineering PLC. The project envisaged an investment of approximately US$ 280 million to develop a modern logistics facility with a planned floor area of around 150,000 square metres.
Following an assessment of prevailing external circumstances, commercial considerations and shareholder interests, the parties decided to discontinue the project. The shareholders will receive refunds of their respective equity contributions, totalling approximately US$ 29.8 million, subject to applicable regulatory requirements and operational expenses.
The SLPA will now pursue an alternative development strategy through a competitive bidding process, subject to the relevant approvals.
The proposed integrated logistics hub aims to expand the Port of Colombo’s capabilities beyond container transshipment by supporting a wider range of port-related and value-added logistics services.
According to the SLPA, the initiative is expected to attract private-sector investment, improve the use of port land and infrastructure, generate sustainable long-term revenue and strengthen Colombo’s position as a leading maritime and logistics hub in South Asia.
