Sri Lanka Ports Authority to pursue a new logistics hub under a public–private partnership model.
State-owned China Merchants Port Holdings has withdrawn from a $392 million joint venture for a logistics hub at the Colombo port in Sri Lanka.
In 2023, China Merchants Group announced its decision to invest in the proposed South Asia Commercial and Logistics Hub (SACLH), taking its cumulative investment in the island nation to $2 billion. Under the joint venture agreed then, China Merchants was to hold a 70% stake, while the Sri Lanka Ports Authority (SLPA) and a Sri Lankan private construction company were to hold 15% each.
The SLPA said on Monday (October 19, 2026) that, “following an assessment of the prevailing external circumstances, commercial considerations and the interests of the respective shareholders, a decision was reached not to proceed with the proposed joint venture.”
The SLPA said it would pursue “an alternative development strategy” through the establishment of a “new logistics hub” under a Public–Private Partnership (PPP) model, through a competitive bidding process.
China Merchants Port Holdings holds an 85% stake in the Colombo International Container Terminal (CICT) at the port and is also involved in the management of the southern Hambantota Port.
Source: The Hindu
