Work on Colombo Port's East Container Terminal Continues to Face Delays
20-Oct-2026.
Four consecutive cancellations of procurement tenders have hampered efforts to bring the East Container Terminal at the Port of Colombo into full operation.
Meanwhile, the Government is exploring the possibility of involving the private sector in operating the state-owned terminal and has initiated steps towards that end.
Although 82 to 85 per cent of the terminal's construction has been completed, a further 10 to 12 months may be required for equipment to arrive from the successful bidder.
Commenting on the matter, Minister of Ports, Civil Aviation and Transport Anura Karunathilaka said that the four previous tenders for the relevant equipment had been cancelled for various reasons. Following ongoing discussions with two bidders, the fifth procurement process was nearing completion. He said significant progress was expected within the next two months.
Meanwhile, the Government is considering private-sector participation in the terminal's operations while retaining state ownership of the East Container Terminal.
Proposals have already been received from several prospective entities, including leading international shipping companies. However, no investor or operator has yet been selected. Minister Anura Karunathilaka said the Government would have to obtain the necessary legal approval before proceeding with an open competitive bidding process.
Designed to handle approximately 2.4 million containers annually, the East Container Terminal has a 1,320-metre quay and a terminal area of approximately 75 hectares. The first phase, comprising a 440-metre quay, was completed in 2015 at a cost of approximately Rs. 11.17 billion. However, operations remain limited due to a shortage of equipment.
In 2019, an agreement was reached between Sri Lanka, India and Japan to develop the terminal under a 51:49 ownership arrangement. Following political controversy, the then Government decided in February 2021 that the Sri Lanka Ports Authority would undertake the terminal's full development and operation.
Accordingly, construction of the second phase commenced in January 2022, with an estimated investment of US$510 million.
