US$ 400m pact signals investor confidence in Sri Lanka - Nimal Siripala | Sunday Observer
Commercial and logistics hub at Colombo Port

US$ 400m pact signals investor confidence in Sri Lanka - Nimal Siripala

23 April, 2023
Minister Nimal Siripala De Silva, Chairman of China Merchants Group, Miao Tianmin, Chairman Access Group Sumal Perera with  officials at the event.  Pic: Shirajiv Sirimane
Minister Nimal Siripala De Silva, Chairman of China Merchants Group, Miao Tianmin, Chairman Access Group Sumal Perera with officials at the event. Pic: Shirajiv Sirimane

Signalling investor confidence in Sri Lanka, China Merchants Port Holdings Co. Ltd, Access Engineering PLC and the Sri Lanka Ports Authority signed a historic agreement to build South Asia’s largest commercial and logistics hub at the Colombo Port.


 An artistic sketch of South Asia Commercial and Logistics Hub and location

Minister of Ports and Shipping Nimal Siripala De Silva said, “The total investment for the project is USD 400 million making it the biggest post Covid-19 related investment.”

He thanked China for assisting Sri Lanka in debt restructuring and China Merchants Port Holdings for investing in Sri Lanka during the economic crisis.

“Launched as a Public-Private Partnership the total project would be vested back to the Sri Lanka Ports Authority after 50 years.”

China Merchants Port Holdings will invest 70% while Access Engineering and the Sri Lanka Ports Authority will invest 15% each.

Chairman of China Merchants Group, Miao Tianmin said that they have also invested over USD 400 million for CICT in 2019 when other investors were shunning investing in Sri Lanka. “We have great relations with Sri Lanka and would keep on making similar investments in the future too.”

The SLPA will also allocate five hectares adjacent to the CBD and the Port City and in return will obtain a lease rental, part of the profits and other benefits as well, said Chairman, SLPA, Keith D. Bernard. “The Centre would be linked directly to the Port Access Elevated Highway which will start operations by the end of this year opening a direct link to the airport.”

There would be an upfront payment of USD 26 million by the project company and an additional USD 126 million will be deposited in Sri Lanka by CMPort after signing the agreement.

The project will create a minimum of 1,800 direct jobs and 10,500 indirect jobs.

“This project will also strengthen the Port of Colombo’s hub position and help to attract more container volumes to the Port. It will also benefit all terminals within the Port.”

The project will offer services such as LCL, MCC, CFS, Bonded Warehousing and Storage, Warehousing and office space for lease and other value added services.

“Showroom spaces and other facilities also will be included in separate sections to enable ease and convenience of international trading.”

Chairman Access Group Sumal Perera said that for over 20 years they have been involved in providing port related services and this is the first time that they are getting involved in a project of this magnitude.

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