COLOMBO: A Chinese state-owned firm said on Monday it plans to take its investment in Sri Lanka to $2 billion by building a major logistics hub. Sri Lanka is looking to kickstart its economic recovery after defaulting on its foreign debt last year, when shortages of essentials such as food, fuel and medicines sparked widespread protests. The investment by the China Merchants Group in alarge logistics complex at Colombo Port, with an estimate construction cost of $392 million, is the first major foreign investment in Sri Lanka since the default. The logistics centre project will take CMG’s “accumulated investment in Sri Lanka to… over $2 billion, making it the largest foreign investment enterprise in the island”, the company said.
CMG will have a 70% stake in the company set up to build the logistics complex at Colombo, the only deepsea port between Dubai and Singapore.
Describing the project as South Asia’s largest logistics hub, CMG said it expects to complete it by the end of 2025. CMG also manages the port complex at Hambantota. China has loaned billions for projects in Asia, Africa and Europe under its Belt and Road Initiative, which critics say is saddling nations with debt. India as well as the US have also expressed concern about China gaining naval advantages in the Indian Ocean.
CMG will have a 70% stake in the company set up to build the logistics complex at Colombo, the only deepsea port between Dubai and Singapore.
Describing the project as South Asia’s largest logistics hub, CMG said it expects to complete it by the end of 2025. CMG also manages the port complex at Hambantota. China has loaned billions for projects in Asia, Africa and Europe under its Belt and Road Initiative, which critics say is saddling nations with debt. India as well as the US have also expressed concern about China gaining naval advantages in the Indian Ocean.