Chinese Firm Withdraws from US$392 Million Logistics Hub Project in Sri Lanka
China Merchants Port Holdings has withdrawn from a proposed US$392 million logistics hub project at the Port of Colombo. This decision was made following a mutual agreement among all project partners, according to a company announcement.
The project, known as the South Asia Commercial and Logistics Hub, involved China Merchants Port Holdings Company Limited's wholly-owned subsidiary, FCGL, along with Access Engineering and the Sri Lanka Ports Authority.
The termination of the project was officially announced on October 15, 2026. This development has been described as a major setback for Sri Lanka.
Why it scored 8/10: The event involves a significant financial investment withdrawal (US$392 million) from a major infrastructure project, impacting the national economy and potentially future foreign investment, as reported by multiple credible sources.
Reported by 10 sources
- Major setback as Chinese firm abandons US$392 million Sri Lanka investment Newswire · 3d ago
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- SLPA confirms cancellation of USD 280 million Chinese-backed Colombo Port logistics project Newswire · 2d ago
- Sri Lanka’s Access Engineering drops S Asia logistics hub project, expects Rs1.45bn recovery EconomyNext · 1d ago
- Lessons from the collapse of Colombo’s US$ 392 mn logistics Hub The Island · 14h ago
- Colombo Port Logistics Project cancelled over agreement concerns: Minister Bimal Newswire · 7h ago
- EXPLAINER – What China Merchants Port’s exit means for Sri Lanka’s investment climate EconomyNext · 5h ago