CHINA MERCHANTS PORT HOLDINGS PULLS OUT OF $392 MILLION LOGISTICS VENTURE AT SRI LANKA’S COLOMBO PORT

Chinese state-owned port operator agrees to terminate joint venture following reassessment of commercial factors, prompting Sri Lankan port authorities to open new public-private partnership bids

Chinese state-owned port operator China Merchants Port Holdings (CMPort) has formally withdrawn from a proposed $392 million logistics hub joint venture at the Port of Colombo in Sri Lanka.  

The joint venture, originally launched in April 2023 under a 50-year build-operate-transfer concession, was structured around a project company where CMPort subsidiary Fortune Centre Group held a 70 percent stake, alongside local partner Access Engineering and the Sri Lanka Ports Authority (SLPA), who held 15 percent each.  

Under a settlement agreement reached between the shareholders and the SLPA, the joint venture will be formally wound up, with approximately $29.8 million in equity contributions being returned to the three partners relative to their initial shareholding proportions.  

The decision to discontinue the multi-million-dollar logistics complex was attributed to changes in external circumstances, project timetables, and revised commercial considerations across all participating parties. 

Following the exit agreement, the Sri Lanka Ports Authority reaffirmed that it remains committed to developing the 13-acre site inside Colombo Port into a regional bonded warehousing and value-added supply chain hub, confirming plans to launch an open competitive bidding process for alternative public-private partnership (PPP) investors.  

The withdrawal represents a notable shift in Chinese logistics investments in Sri Lanka as the South Asian island nation continues navigating its post-2022 economic recovery and restructuring major maritime infrastructure concessions.