Business · Sri Lanka Bureau
Sri Lanka scraps $280m China Merchants port deal, seeks new bidders
The government has terminated a joint venture agreement with China Merchants for a logistics facility at Colombo Port, opening the project to international competitive bidding under a new public-private partnership framework.
LSN Sri Lanka ·
Sri Lanka has withdrawn from a $280 million joint venture with China Merchants Group for the development of a logistics hub at Colombo Port, according to officials familiar with the decision. The move marks a significant policy shift in the country's approach to major port infrastructure projects and signals the government's intent to pursue alternative partnership models.
The terminated agreement had envisioned the construction and operation of a specialized logistics facility within the port complex. The decision to scrap the arrangement comes as the government seeks to diversify its infrastructure financing and development partnerships beyond single-source agreements.
Authorities have announced plans to invite fresh proposals through a transparent public-private partnership process, opening the project to international bidders. The new competitive bidding framework is expected to attract multiple consortiums and ensure competitive pricing and operational standards for the facility.
The development reflects broader shifts in Sri Lanka's infrastructure policy following recent economic challenges and debt restructuring efforts. Officials have emphasized the importance of securing optimal terms and maximizing value for the state in major port and logistics projects. The revised approach is intended to ensure projects proceed under transparent, competitive conditions aligned with international best practices.
Photo: A container ship passes the lighthouse at the Port of Colombo, August 2013. Rehman Abubakr via Wikimedia Commons (CC BY-SA 4.0).