Thursday Oct 22, 2026
Thursday Oct 22, 2026
Thursday, 22 October 2026 00:23 - - {{hitsCtrl.values.hits}}
Leader of the House and Minister Bimal Rathnayake
Leader of the House and Minister Bimal Rathnayake told Parliament yesterday an agreement to allocate 10 acres of land at the Colombo Port was among the reasons the Government opposed the $ 392 million South Asia Commercial and Logistics Hub (SACLH) joint venture involving China Merchants Port Holdings Company Ltd.
Rathnayake said the previous administration reached an agreement allocating land located between the East and West Container Terminals to the joint venture logistics company. He said the Government supported the investment but had concerns over the manner in which the agreement had been reached.
He said he had personally worked to facilitate the project after assuming office, including bringing senior company officials to Sri Lanka for discussions.
“We held several discussions with company officials and made it clear that we supported the investment. However, we could not proceed under the existing agreement, as the proper procedures had not been followed,” he said.
Rathnayake rejected allegations that the Government’s actions had driven away investors. He argued that proceeding with investments under questionable agreements could discourage other potential investors.
His remarks follow confirmation by the Sri Lanka Ports Authority (SLPA) that the project would not proceed. SACLH, established in 2023, was 70% owned by China Merchants Port through a wholly-owned subsidiary, while the SLPA and Access Engineering PLC held 15% each. According to the SLPA, the shareholders decided to discontinue the project following a review of external circumstances, commercial considerations and their respective interests.
The settlement agreement ends the Shareholders Agreement, the Build-Operate-Transfer (BOT) Agreement and the Site Lease Agreement early. Under the settlement, the three partners will recover about $ 29.8 million of the $ 37.1 million they had already invested, in proportion to their stakes.
SLPA plans to develop an alternative logistics hub at the Colombo Port under a Public-Private Partnership (PPP) model, with investors to be selected through competitive bidding. Access Engineering PLC expects to recover about Rs. 1.45 billion of the Rs. 1.76 billion it invested in the South Asia Commercial and Logistics Hub, leaving the company to recognise a loss of about Rs. 310 million in its own financial statements.
