The authority will pursue the project through a competitive bidding process, subject to the necessary approvals.     The decision follows the discontinuation of the previously proposed South Asia Commercial and Logistics Hub project.     The South Asia Commercial and Logistics Hub was established in 2023 with the participation of China Merchants Port Holdings Company Limited, SLPA and Access Engineering PLC.     The project envisaged an investment of approximately US$280 million for the development of a modern logistics facility covering around 150,000 square metres.     Following an assessment of external circumstances, commercial considerations and shareholder interests, the participating parties decided not to proceed with the project.     The shareholders will receive refunds of their respective equity contributions, totalling approximately US$29.8 million. The refunds remain subject to applicable regulatory requirements and operational expenses.     SLPA will now pursue an alternative development strategy through a competitive bidding process.     The proposed integrated logistics hub will aim to expand the Port of Colombo’s capabilities beyond container transshipment. It will support a wider range of port-related and value-added logistics services.     According to SLPA, the development is expected to attract private-sector investment and improve the use of port land and infrastructure.    

The authority also expects the project to generate sustainable long-term revenue and strengthen Colombo’s position as a leading maritime and logistics hub in South Asia.