China Merchants Port has terminated its proposed US$392 million logistics hub project in Colombo, citing land-related and regulatory obstacles, according to Lloyd’s List.
The project was originally planned as South Asia’s largest logistics complex under a 50-year build-operate-transfer agreement.
The decision marks the withdrawal of a major Chinese investment in Sri Lanka’s logistics sector.
According to the report published today, the Sri Lanka Ports Authority (SLPA) will return US$26 million to shareholders following the termination. (Newswire)