By: Staff Writer
June 02, Colombo (LNW): Sri Lanka’s plans to transform Trincomalee into a major maritime and logistics hub are facing renewed scrutiny, with top port officials warning that ambitious infrastructure projects risk becoming costly white elephants unless backed by genuine commercial demand and stronger transport connectivity.
Speaking at the Sri Lanka-German Business Forum 2026, Sri Lanka Ports Authority (SLPA) Chairman Dr. Parakrama Dissanayake raised concerns over proposals for large-scale investments at Trincomalee Port, arguing that development must be guided by economic realities rather than grand infrastructure aspirations.
His remarks come amid growing calls for faster development of the strategically located eastern port, often touted as a future gateway for regional trade and industrial expansion. However, Dr. Dissanayake cautioned that many projects identified under Sri Lanka’s National Ports Master Plan have yet to undergo comprehensive financial feasibility assessments, raising questions about their long-term sustainability.
According to him, the master plan, originally prepared by the Asian Development Bank (ADB), outlines a range of potential developments. Yet several of these proposals remain conceptual and have not been rigorously evaluated for their commercial viability. He revealed that the ADB is expected to revisit and revise the plan, placing greater emphasis on financial returns and practical implementation.
Drawing lessons from the experience of Hambantota Port, Dr. Dissanayake stressed that future port developments must be demand-driven. Building modern port infrastructure without guaranteed cargo volumes or investor interest, he warned, could lead to underutilised facilities and significant financial burdens.
“Ports are extremely expensive investments,” he noted, emphasizing that attracting business should come before expanding infrastructure.
The SLPA is currently engaged in discussions with multiple stakeholders to explore ways of generating economic activity and cargo demand in Trincomalee before launching major construction projects. Central to these discussions is a proposal by the Board of Investment (BOI) to establish a logistics and industrial hub in the region. The initiative could involve making approximately 300 acres of land in Kappalturai available for private sector investment.
However Dr. Dissanayake questioned whether such plans could succeed without first addressing critical shortcomings in transport links and supply-chain connectivity. Efficient road, rail and logistics networks, he argued, are essential if Trincomalee is to attract investors and emerge as a competitive logistics destination.
The challenges extend beyond domestic infrastructure. The SLPA Chairman also highlighted the realities of the global shipping industry, where a small group of dominant operators largely determine trade routes and port calls. The world’s ten largest shipping lines now control nearly 84 percent of global container shipping capacity, giving them substantial influence over which ports receive traffic.
This concentration of market power poses a particular challenge for smaller ports seeking to establish themselves in highly competitive shipping networks.
As Sri Lanka pursues its long-term maritime ambitions, Dr. Dissanayake’s message was clear: infrastructure alone will not guarantee success. The future of Trincomalee Port will ultimately depend on its ability to attract cargo, secure investor confidence, strengthen connectivity and prove its commercial value in an increasingly competitive global marketplace.
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