Geopolitical pressure, among others, suspected

EconomyNext and Lanka Business Online report that South Asia Commercial and Logistics Hub Limited’s shareholders agreed to end the proposed Port of Colombo venture and settle its associated agreements. Lanka Business Online says China Merchants Port Holdings’ subsidiary FCGL, Access Engineering and the Sri Lanka Ports Authority signed the settlement, announced on October 15, 2026, to bring the contracts to an orderly close and wind up the project company. EconomyNext says an initial corporate disclosure about the project was made in April 2023.

Newswire and Lanka Business Online report that China Merchants Port Holdings held 70% of the joint venture, with the Sri Lanka Ports Authority and Access Engineering each owning 15%. Newswire describes the planned project as worth USD 280 million; Daily Mirror’s reports on Access Engineering’s recovery and suspected geopolitical pressure refer to a USD 392 million venture. Newswire says the proposal involved 10 acres between the port’s East and West Container Terminals.

EconomyNext reports that Access Engineering anticipates recovering about Rs.1.453 billion from its investment of roughly Rs.1.762 billion. The expected amount includes USD 3.286 million, valued at around Rs.1.087 billion, as its share of the refund, and approximately Rs.365 million from distributable funds. EconomyNext says audited group accounts for the year ended March 31, 2026, recorded about Rs.387 million in the company’s share of losses; the company expects no further material group-level loss, but forecasts a company-level loss of about Rs.310 million. Daily Mirror also reports that the expected recovery is more than 82% of the investment.

Lanka Business Online reports that the venture had received USD 37.14 million in total capital by December 31, 2025: USD 26 million from FCGL and USD 5.57 million apiece from Access Engineering and the Sri Lanka Ports Authority. It says the Authority will pay about USD 4.095 million in tax and late-payment liabilities, while USD 21.905 million and roughly USD 7.85 million in available cash are to be shared according to ownership stakes. FCGL is expected to receive about USD 20.83 million, and the other two partners about USD 4.46 million each.

Newswire reports that Ports Minister Bimal Rathnayake told Parliament the government supported the proposed investment but opposed proceeding under the existing agreement, saying required procedures had not been followed. He said he had helped arrange discussions with company officials and disputed claims that the government’s actions had deterred investors. Daily Mirror reports that observers suspect geopolitical factors may have contributed to the withdrawal. Daily Mirror and Ada Derana report that the Sri Lanka Ports Authority plans to develop a new logistics hub through a public-private partnership.

Written automatically by AI from the outlets’ own reports, and not reviewed by an editor. It can be wrong — the original report is the authority.