State-owned China Merchants Port Holdings has withdrawn from a $392 million joint enterprise created to construct a dedicated logistics hub at the Colombo port. Known as the South Asia Commercial and Logistics Hub, the proposed development was situated within the capital city's main maritime facility. The exit marks a sudden turn in bilateral commercial ties involving infrastructure financing. When China Merchants Group originally announced the funding commitment in 2023, local authorities framed the venture as the initial major foreign direct investment to enter the nation after its foreign debt default during an intense economic downturn the previous year. That commitment boosted total capital invested by the enterprise in Sri Lanka to $2 billion. The withdrawal leaves the future structure of the maritime facility uncertain. Official updates published on Monday, 19 October 2026, confirmed the departure of the primary investor from the logistics undertaking, ending its direct participation in the development of the commercial complex.
China Merchants Port Holdings exits $392 million Sri Lanka logistics project
The Chinese state enterprise pulled out of the Colombo port commercial hub venture.
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In short
- China Merchants Port Holdings withdrew from a $392 million logistics venture at Colombo port.
- The 2023 commitment brought total investment by China Merchants Group in the nation to $2 billion.
- The project was Sri Lanka's first major foreign direct investment following its foreign debt default.
From public sources and the WeNepal research team
https://wenepal.com/article/china-merchants-port-holdings-exits-392-million-sri-lanka-logistics-20261019
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