SLPA to develop Colombo Port logistics hub under PPP after ending SACLH project

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 after a previously proposed joint venture was not taken forward.

The earlier project, known as the 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. It 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.

The parties decided to discontinue the project following an assessment of prevailing external circumstances, commercial considerations and shareholder interests. 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.