China pulls out of Sri Lanka port logistics venture

According to Business Recorder, China Merchants Port Holdings has stepped back from a planned USD392 million partnership aimed at building a large logistics centre in Sri Lanka. The Sri Lanka Ports Authority announced the change on Monday. The Chinese company decided against moving forward with the arrangement first revealed in 2023, although the wider scheme will carry on.

Under the original structure, China Merchants was to own 70 per cent of the venture, while the authority and a private Sri Lankan construction firm would each take 15 per cent. The SLPA explained that the decision followed a review of external conditions, commercial factors and the interests of shareholders. In its statement, the authority said the proposed joint venture would not go ahead.

The authority is now looking for a replacement partner for the 150,000-square-metre hub at Colombo Port. The site already hosts other Chinese investments.