China Merchants Port, Access Engineering & Sri Lanka Ports Authority Pull the Plug on South Asia Logistics Hub

China Merchants Port Holdings Company Limited has officially terminated the South Asia Commercial and Logistics Hub project in Sri Lanka following a mutual agreement among all project partners. According to a company announcement released on October 15, 2026, the company’s wholly-owned subsidiary, FCGL, alongside Access Engineering and the Sri Lanka Ports Authority, signed a settlement agreement to effect an early and orderly termination of all governing contracts and begin winding up the project company, SACL.

The decision stems from a re-evaluation of external circumstances, including adjustments to the project’s implementation environment, timeline, and respective commercial considerations. Following consultations with local government authorities, the parties chose to conclude the venture amicably, agreeing to a neutral handling approach where invested capital is refunded and all outstanding matters are fully resolved. The board of directors confirmed that the terms of the settlement are fair, based on normal commercial terms, and aligned with the best interests of the company and its shareholders.

Financially, an aggregate capital sum of USD 37.14 million had been contributed to SACL as of December 31, 2025, with FCGL providing USD 26 million and Access Engineering and SLPA contributing USD 5.57 million each. Under the terms of the settlement, the Sri Lanka Ports Authority will cover tax and late payment liabilities totaling approximately USD 4.095 million with the Sri Lanka Inland Revenue Department. The remaining USD 21.905 million, along with an available cash balance of approximately USD 7.85 million, will be distributed among FCGL, Access Engineering, and SLPA in line with their respective 70%, 15%, and 15% equity stakes. Consequently, FCGL will receive approximately USD 20.83 million, while Access Engineering and SLPA will each receive approximately USD 4.46 million.