Sri Lanka targets transshipment growth with India’s support and major port projects

Sri Lanka is strengthening its transshipment operations by capitalizing on support from fast-growing economies, particularly India, as the Sri Lanka Ports Authority (SLPA) progresses with significant development projects.

“We are receiving strong support from the fastest-developing economies, particularly India. Their transshipments are what we target,” said SLPA Harbour Master Capt. Nirmal Siva.

The Port of Colombo, Sri Lanka’s primary transshipment hub, recorded 8.2 million twenty-foot equivalent units (TEUs) in 2024, a 10.5% increase year-on-year. The ongoing development of the East and West Container Terminals (ECT and WCT) is projected to nearly double the port’s capacity to 15 million TEUs by completion.

Key projects include the ECT jetty extension from 600 to 1,320 meters, scheduled for completion by mid-2026, and the Colombo West International Terminal (CWIT). The CWIT, a public-private partnership with India’s Adani Group (51%), John Keells Holdings (34%), and SLPA (15%), will open its initial 700-meter section in February 2025, with full operations expected by late 2026.

Preparations for the next phase of the WCT expansion are underway, aiming to add another 1,400 meters of terminal space starting in 2028. Additionally, the SLPA has completed a feasibility study for the Colombo North Harbour project, which will feature three container terminals, with construction expected post-2030, based on demand.

Beyond Colombo, other ports are also undergoing transformation. The Galle Port is being developed into a tourism hub with yacht marina facilities, while Trincomalee Harbour is positioned as an industrial hub focusing on green hydrogen, ammonia, and methanol production. Evaluations are also being conducted to introduce oil and gas initiatives at Trincomalee.

In the north, the Kankesanthurai Port recently launched a ferry service connecting Nagapattinam Port in India with Sri Lanka, accommodating 150 passengers four times a week. Expansion of this service is being considered.

These developments underline Sri Lanka's strategic focus on enhancing its maritime infrastructure to boost economic growth and regional connectivity.