Sri Lanka Ports Authority to pay China Merchants Port US$21.9 million settlement

The settlement represents reimbursement for investments made by the Chinese port operator in the now-defunct development initiative. China Merchants Port Holdings Company lodged formal notice of the compensation agreement, marking the conclusion of the failed commercial venture at Sri Lanka's principal port facility.

The South Asian Commercial and Logistics Hub was envisioned as a major infrastructure project to enhance the Port of Colombo's capacity and regional trade positioning. The decision to discontinue the initiative follows a reassessment of the project's viability and strategic priorities by both parties involved.

The US$21.905 million payment reflects the financial commitments and preparatory work undertaken by China Merchants Port during the project's development phase. The settlement concludes the investment dispute between the Sri Lanka Ports Authority and the Hong Kong-listed port operator.

This resolution underscores the evolving dynamics in Sri Lanka's port development strategy as the nation manages multiple infrastructure commitments and partnerships in the maritime sector. The Port of Colombo remains a critical economic asset, serving as a transhipment hub for regional and international shipping routes.