The Sri Lanka Ports Authority (SLPA) has decided to develop a new logistics hub within the Port of Colombo through a Public–Private Partnership (PPP) model after shareholders decided not to proceed with the previously proposed joint venture involving China Merchants Port Holdings Company Limited and Access Engineering PLC.
The earlier project was planned under South Asia Commercial and Logistics Hub (SACLH), a joint venture established in 2023. China Merchants Port Holdings, through its wholly owned subsidiary, held a 70% stake, while SLPA and Access Engineering PLC each held 15%.
The proposed facility involved an investment of approximately USD 280 million and was designed to provide around 150,000 square metres of floor space. The project aimed to strengthen Colombo’s logistics capabilities and reinforce its position as a major regional maritime and logistics hub.
However, following an assessment of prevailing external circumstances, commercial considerations and shareholder interests, the parties decided not to proceed with the joint venture.
Under the agreed arrangements, the shareholders will receive refunds of their respective equity contributions, subject to applicable regulatory requirements and operational expenses. The total refund is estimated at approximately USD 29.8 million, to be distributed among the shareholders in proportion to their respective equity stakes.
Despite the discontinuation of the original project, SLPA remains committed to expanding modern logistics infrastructure at the Port of Colombo. The authority plans to pursue the new logistics hub through a competitive bidding process under the PPP model, subject to the necessary approvals.