China pulls out of $392 million Sri Lanka Port pro...

Summary

• China’s state-owned China Merchants Port Holdings has decided to withdraw from a $392 million logistics centre project at Sri Lanka’s Colombo Port, dealing a setback to one of the country’s major planned foreign investments following its devastating economic crisis.
• Under the original arrangement, China Merchants Port Holdings was to hold a 70 per cent stake, while the Sri Lanka Ports Authority and local construction company Access Engineering would each own 15 per cent.
• The withdrawal is significant because the project was the first major foreign investment announced after Sri Lanka plunged into a severe economic crisis in April 2022.

AI Generated Summary

China’s state-owned China Merchants Port Holdings has decided to withdraw from a $392 million logistics centre project at Sri Lanka’s Colombo Port, dealing a setback to one of the country’s major planned foreign investments following its devastating economic crisis.

The Sri Lanka Ports Authority confirmed that the project would no longer proceed under the existing partnership, although efforts to find a new investor would continue.

The project, announced in 2023, aimed to establish a modern logistics centre covering approximately 150,000 square metres at Colombo Port. The facility was expected to provide cargo handling, storage and other commercial services to strengthen the port’s role as a regional shipping hub.