SLPA Ends US$ 280 Million China Merchants Logistics JV, Opens Competitive PPP Bidding for Colombo Hub

The Sri Lanka Ports Authority (SLPA) has formally terminated its joint venture with China Merchants Port Holdings and Access Engineering PLC for the planned South Asia Commercial and Logistics Hub (SACLH) — a US$ 280 million, 150,000-square-metre logistics complex at the Port of Colombo. Under the original structure, China Merchants held a 70% stake, with the SLPA and Access Engineering each holding 15%. Approximately US$ 29.8 million in equity contributions will be refunded to the three shareholders proportionally.

The SLPA stated that the termination “does not represent a departure from its commitment to logistics infrastructure development,” characterising the decision as an opportunity to pursue an alternative development model. The Authority will now conduct an open competitive bidding process for a Public-Private Partnership (PPP) to advance the hub, subject to relevant approvals. The project aims to transform Colombo from primarily a container transshipment terminal into a comprehensive maritime centre serving shipping lines, cargo owners, and logistics operators — a strategic imperative as the port targets 13 million TEUs by 2028.

Source: EconomyNext – Sri Lanka drops $280mn Colombo Port logistics JV with China Merchants, calls new PPP bids – October 19, 2026