The Sri Lanka Ports Authority (SLPA) plans to develop a new integrated logistics hub at the Port of Colombo through a Public–Private Partnership (PPP) model. The initiative follows the decision to discontinue a previously proposed joint venture involving the SLPA and private-sector partners. The new project is intended to strengthen the port’s logistics infrastructure and expand its role in regional and international maritime trade. The development will be undertaken through a competitive bidding process.

The proposed logistics hub will occupy a substantial area within the port and support a range of port-related and value-added logistics activities. The facility is expected to provide improved services to shipping lines, cargo owners, logistics operators and other businesses involved in international supply chains. By expanding its logistics capabilities, the Port of Colombo aims to move beyond its predominantly container-transshipment operations and establish itself as a more comprehensive maritime and logistics centre in South Asia.

The new initiative follows the termination of the previously proposed US$280 million joint venture under the South Asia Commercial and Logistics Hub (SACLH). Established in 2023, the joint venture involved China Merchants Port Holdings Company Limited, Access Engineering PLC and the SLPA, which held respective equity stakes of 70%, 15% and 15%. The earlier proposal envisaged approximately 150,000 square metres of floor space for logistics operations. However, the shareholders decided not to proceed after considering external circumstances, commercial factors and their respective interests.

Following the discontinuation of the earlier project, the SLPA intends to pursue an alternative development strategy that better aligns with its long-term priorities and commercial objectives. The authority has emphasised that ending the previous joint venture does not mean abandoning its plans to develop modern logistics facilities. Instead, the new PPP approach is intended to provide an alternative framework for securing private investment and delivering infrastructure that supports the port’s future requirements.