Sri Lanka Outlines Strategic Development Plans for Colombo Port East and West Terminals

Sri Lanka is preparing to revamp its maritime infrastructure by bringing in international shipping lines for terminal operations and advancing major expansion projects at the Port of Colombo, President Anura Kumara Dissanayake announced during the Sri Lanka Economic and Investment Summit 2026.

Addressing the forum, President Dissanayake highlighted that while the state will retain ownership of the Colombo Port’s East Container Terminal (ECT), its management will be opened to private investors and leading global shipping lines. Currently handling approximately 500,000 TEUs—a fraction of its two-berth operating potential—the move aims to fully optimize the terminal’s capacity through international operational expertise.

In parallel, plans are moving forward for the second phase of the West Container Terminal (WCT), which hinges on constructing a massive breakwater estimated to cost around $1.4 billion. The Asian Development Bank is carrying out feasibility studies for the project, with an interim report expected by December and a complete assessment slated for April. Initial funding will be allocated in the upcoming national budget to support early development phases.

Beyond container handling, the government is focusing on transforming the port zone into a regional logistics hub. Efforts include resolving prior legal disputes over logistics land, establishing off-port container yards in Kerawalapitiya to ease harbor congestion, and revising bunkering tax policies to keep Sri Lanka’s maritime services competitive in international shipping routes.