• Project intended to build South Asia’s largest commercial and logistics complex 
• SLPA to commence fresh RFP process for relevant land
• Land to be advertised together with other plots owned by SLPA 

The proposed project to build South Asia’s largest commercial and logistics complex within the Port of Colombo by China Merchants Port Holdings (CMPort) has been cancelled, with the Sri Lanka Ports Authority (SLPA) preparing to commence a fresh Request for Proposal (RFP) process for the relevant land.

Speaking to The Sunday Morning Business, Board of Investment (BOI) Director General Renuka M. Weerakone confirmed that the previously announced logistics complex project within the Colombo Port would not proceed and that the SLPA would shortly call for fresh proposals for the land.

“That land space will be advertised by the SLPA. It is Port Authority land, so they will call for RFPs soon. Once it is advertised and proposals are called for, interested parties can submit bids for it. That is how the process will progress from here onwards,” she stated.

Weerakone further stated that the land in question would be advertised together with several other plots of land owned by the SLPA for investment purposes.

Speaking to The Sunday Morning Business, SLPA Chairman Parakrama Dissanayake also confirmed that the previously awarded project had been cancelled and that the authority would be looking to commence a fresh RFP process.

“That is a process the SLPA will have to look at. Currently, we are examining that prospect,” he stated.

The project to construct South Asia’s largest commercial and logistics complex within the Port of Colombo was initially announced in 2023. The proposed investment structure envisaged China Merchants Port Holdings holding a 70% stake in the venture, while the SLPA and Access Engineering PLC were each to hold 15% stakes.

However, speaking to The Sunday Morning Business in 2024, then Chairman of the SLPA Sirimevan Ranasinghe revealed that the project had stalled due to complications arising from Sri Lanka’s withdrawal of the strategic development project concessions programme pursuant to commitments undertaken under the International Monetary Fund (IMF) programme following the 2022 economic crisis.

Accordingly, he further revealed that discussions had thereafter been held regarding the possibility of granting the project concessionary status through an agreement to be entered into with the BOI.

Speaking to The Sunday Morning Business in 2023, then Managing Director of the SLPA Prabath J. Malavige stated that the proposed logistics complex investment would be undertaken by CMPort through a Public-Private Partnership (PPP) arrangement approved on a Build-Operate-Transfer (BOT) basis for a leasehold period of 50 years.