By:Staff Writer
January 22, Colombo (LNW): Sri Lanka’s ports are emerging as critical pillars of the national economy, with the Colombo Port recording record-breaking container volumes and Hambantota making notable gains in maritime trade. Yet as regional competition intensifies, the country’s ability to translate port growth into sustained economic advantage is increasingly dependent on policy reforms, technological upgrades, and strategic investment areas where the country has historically lagged.
The Central Bank of Sri Lanka (CBSL) notes that while Colombo’s port expansion is significant, geography alone can no longer secure its transshipment dominance. Competing ports in South Asia and the Middle East have achieved rapid growth through focused investment, regulatory reform, and digital transformation. This has placed Sri Lanka in a position where it must actively defend its hub status rather than rely on historical advantage.
The CBSL’s report highlights the port sector’s strong performance in 2024 and 2025. Container throughput in the first ten months of 2025 reached 6.92 million TEUs, with transshipment volumes accounting for 5.52 million TEUs.
This growth reflects not only regional trade dynamics but also domestic economic activity. However, the report also reveals that congestion and capacity constraints have been recurring challenges. In 2024, a surge in traffic following shipping route changes away from the Red Sea led to severe congestion, underscoring the vulnerability of port operations to external shocks.
The introduction of the Colombo West International Terminal (CWIT) in February 2025 provided relief, supporting a rebound in ship arrivals. Yet the CBSL warns that operational efficiency cannot be solved by terminals alone.
Modernisation, automation, and digitalisation are essential to improve turnaround times, reduce bottlenecks, and enhance reliability factors that directly influence shipping lines’ choice of hub.
In addition to Colombo, Hambantota Port has gained momentum, starting container handling operations in 2024 and achieving notable growth through 2025. Vehicle handling has also improved following the relaxation of import restrictions. This diversification is significant, as it reduces dependence on a single port and strengthens Sri Lanka’s maritime trade infrastructure.
However, the CBSL emphasises that the broader economic impact of ports depends on multimodal connectivity and value-added logistics. For ports to contribute meaningfully to long-term growth, they must be integrated with road, rail, and warehousing networks, while also offering advanced logistics services. This requires strategic planning and coordination across government agencies.
Ultimately, Sri Lanka’s port performance is a critical economic asset, but the country must adapt to remain competitive. The planned completion of the Colombo East Container Terminal and CWIT by 2026 will increase capacity to 15 million TEUs, but the real challenge lies in ensuring that growth translates into efficiency, resilience, and sustainable economic development.
If Sri Lanka can align infrastructure expansion with digital transformation and private sector expertise, ports could become a major engine of growth. If not, the nation may see its maritime advantage erode as regional rivals accelerate.
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