China pulls out of Sri Lanka port logistics venture

COLOMBO: A Chinese state-owned firm has withdrawn from a USD392 million joint venture to develop a major logistics hub at Sri Lanka’s main seaport, the key local partner said Monday.

The Sri Lanka Ports Authority (SLPA) said China Merchants Port Holdings had decided not to proceed with the collaboration announced in 2023, but the project would continue.

“Following an assessment of the prevailing external circumstances, commercial considerations and the interests of the respective shareholders, a decision was reached not to proceed with the proposed joint venture,” the SLPA said in a statement.

China Merchants was to hold 70 per cent of the proposed joint venture, while the SLPA and a Sri Lankan private construction company were each to hold 15 per cent.

The SLPA said it was now seeking a new investor for the 150,000-square-metre logistics hub at Colombo Port, where China already has other investments.