Minister of Ports Bimal Rathnayake has stated that concerns regarding an agreement to allocate 10 acres of land at the Colombo Port were among the reasons the government opposed a proposed USD 280 million logistics project involving a Chinese company.
Addressing Parliament, the Minister explained that the agreement provided for the allocation of 10 acres situated between the East and West Container Terminals at the port to the logistics company.
He clarified that the government supported the proposed investment but had reservations about the process through which the agreement had been established.
Rathnayake said he had personally taken steps to facilitate the project after assuming office, including arranging visits to Sri Lanka by senior company officials for discussions.
He noted that several meetings had been held with company representatives, during which the government had communicated its support for the investment. However, he maintained that the project could not proceed under the existing agreement because the appropriate procedures had not been followed.
Rejecting claims that the government’s decision had driven investors away, the Minister argued that allowing investments to proceed under agreements involving procedural irregularities could undermine investor confidence and discourage other potential investors.
His comments follow confirmation by the Sri Lanka Ports Authority (SLPA) that the proposed USD 280 million logistics project at the Port of Colombo would not go ahead.
The project was to be implemented through South Asia Commercial and Logistics Hub (SACLH), a joint venture established in 2023. China Merchants Port Holdings Company Limited held a 70% stake in the venture, while the SLPA and Access Engineering PLC each owned 15%.
