By constructing a significant logistics hub, a state-owned Chinese company said on May 1 that it will increase its investment in Sri Lanka to $2 billion.
After defaulting on its foreign debt last year, when shortages of necessities like food, fuel, and medications led to major anti-government riots, Sri Lanka is attempting to jump-start its economic recovery.
The China Merchants Group’s $392 million investment in a sizable logistics complex at Colombo Port is the country’s first significant foreign investment after the default. The logistics hub project would increase CMG’s total investment in Sri Lanka to “over 2 billion US dollars,” the firm said in a statement on Monday. This will make CMG the largest foreign investment enterprise on the island. The business formed to create the logistics complex at Colombo, the only deep-sea port between Dubai and Singapore, will be owned by CMG to the tune of 70%. CMG stated that it anticipates finishing the project by the end of 2025, calling it the largest logistics centre in South Asia.