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H’tota int’l port invests USD 108 mn in new cranes

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Hambantota International Port Group (HIPG) recently signed an agreement to invest USD 108 million in new container handling equipment, marking a major expansion of its container terminal capacity and reinforcing Sri Lanka’s position as an emerging logistics hub in the Indian Ocean, the company said.

The agreement, signed at a ceremony held at the Colombo Hilton on March 26, brings together HIPG and Shanghai Zhenhua Heavy Industries Co., Ltd. (ZPMC) to procure six quay cranes, 16 rubber-tyred gantry cranes (RTGs) and 40 trailers, under the initial phase of the port’s Phase II container terminal development.

Speaking at the ceremony, Qi Zhenhong, Ambassador of the People’s Republic of China to Sri Lanka, said, “I wish to express my sincere appreciation to all those who have long cared for, supported, and contributed to China–Sri Lanka port cooperation. Today’s signing marks another important achievement in deepening bilateral cooperation in the port sector and advancing high-quality Belt and Road cooperation. It reflects our shared commitment to joint development and mutual benefit, and will inject new momentum into the development of Sri Lanka’s port system.”

The investment comes amid growing demand for alternative logistics hubs as global shipping patterns continue to shift, particularly due to geopolitical tensions in the Middle East. HIP’s location, just 10 nautical miles from the main East–West shipping route, positions it as a reliable and efficient option for shipping lines seeking minimal deviation and operational stability.

The new quay cranes, with a 72-metre outreach, 55-metre lifting height and 65-ton lifting capacity, will enable Hambantota International Port (HIP) to handle the world’s largest container vessels, while the RTGs will enhance yard efficiency and support more environmentally sustainable operations through a transition towards electrification.

Once deployed, the equipment will activate the port’s existing 1,300-metre container berth, increasing total annual capacity to approximately 2 million TEUs and extending total quay length for container operations to nearly 2 kilometres, enabling the port to handle multiple large vessels simultaneously.

Hambantota International Port has recorded strong growth across its core business segments. In 2025, the port handled 8.24 million tonnes of cargo, a significant increase from 3.0 million tonnes in 2024. Roll-on/Roll-off (RoRo) operations rose to 726,153 units, up from 579,362 units the previous year, while container throughput surged to 428,036 TEUs, compared to 53,169 TEUs in 2024. The sharp rise across all segments highlights the port’s rapid emergence as a regional transhipment platform.

“The Hambantota Port is a flagship project of China–Sri Lanka cooperation. As a joint venture invested in, developed, and operated by both sides, the port has, since its inception, remained firmly aligned with Sri Lanka’s national development priorities, striving to promote regional economic prosperity and enhance connectivity. Hambantota Port is not merely a commercial project; it is a development platform rooted in Sri Lanka, serving Sri Lanka, and benefiting Sri Lanka. As its functions continue to improve and industrial elements gradually cluster, the port is becoming an important engine driving development in the southern region,” Ambassador Qi Zhenhong further noted.

The port’s development is part of a broader strategy to build integrated capabilities across multiple sectors, including containers, RoRo, energy, and industrial operations, supported by the ongoing development of its industrial park, where the first manufacturing facility has already commenced operations. In addition to capacity expansion, the investment supports national sustainability priorities, including the transition towards electric RTGs, reducing emissions and contributing to the Government’s “Clean Sri Lanka” initiative.



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Sri Lanka, India caught in US-Iran ship crisis

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By Shamindra Ferdinando

Iran has sought the Indian intervention, at the highest level, to provide lifesaving support to the crews of empty Iranian vessels stranded just outside Sri Lanka’s 12-nautical mile territorial waters off Galle.

Sources familiar with the issue said that Iran had brought the developing situation to the attention of New Delhi as the crews of almost 20 vessels, included Indian nationals. Sources stressed that the group of vessels that unloaded crude oil a couple of months back were now stranded within Sri Lanka’s Exclusive Economic Zone (EEZ).

The US Navy torpedoed an unarmed Iran frigate, returning from India, on 04 March, 2026, about 19 nautical miles off the Galle coast. The unprovoked attack killed nearly 100 Iranians.

The Iranian Embassy in Colombo has inquired from the Indian High Commission of their response to the situation, sources said. The US has issued a global warning against providing food, water, medicine and other services to the Iranian vessels. The outcome of Iran-India talks on the issue at hand was not known, though sources asserted India may not throw its weight behind Iranian efforts to address the issue.

Responding to The Island queries, sources said both Sri Lanka and India were in a dilemma due to the US warning. India couldn’t ignore the plight of the Indian crew members and the Iranian vessels in its backyard.

The Sri Lankan government remains tight-lipped about the vessels stranded in its EEZ. Our efforts to elicit a response from relevant authorities were in vain. In addition to Indians, there are Bangladeshis among the crew members. Iran has explicitly stated the responsibilities of the countries concerned to provide assistance in terms of international law.

The Iranian position was articulated by its Ambassador to Sri Lanka, Dr.Alireza Delkhosh, recently. In a special statement, Ambassador Delkhosh emphasised that in terms of the Convention on the Law of the Sea (Article 98) as well as SOLAS and SAR

Conventions, Sri Lanka couldn’t refrain from providing the needs of the Iranian vessels stranded in its EEZ.

SLMC leader Rauff Hakeem lambasted the NPP government in Parliament for failing to provide assistance to the Iranian ships. The former Minister alleged that the government was simply carrying out dictates of the US. He strongly criticised the way Foreign Minister Vijitha Herath was handling the issue.

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Namal further remanded

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MP Namal Rajapaksa being brought to the Colombo Magistrate’s Court yesterday. Pic by Nishan S Priyantha

MP Namal Rajapaksa, who is in remand custody over the controversial Airbus deal, was further remanded until October 27 by the Colombo Magistrate’s Court yesterday (13).

Colombo Chief Magistrate Asanga S. Bodaragama made the order after considering submissions by officers of the Commission to Investigate Allegations of Bribery or Corruption and lawyers representing Rajapaksa.

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IMF projects Lankan economic growth to moderate amidst mounting global uncertainties

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Sri Lanka’s economy is expected to sustain its recovery over the next two years, although growth is projected to moderate amid mounting global uncertainties, according to the International Monetary Fund’s (IMF) latest World Economic Outlook.

In its World Economic Outlook 2026: Resilience Under Strain, Urgent Choices, the IMF projects Sri Lanka’s economy to expand by 4% in 2026, slowing to 3.7% in 2027, following estimated growth of 5% in 2025.

Inflation, meanwhile, is forecast to rise to 5.3% in 2026 and 5.4% in 2027, reversing the average deflation rate of 0.5% recorded in 2025.

Unemployment is expected to remain steady at 3.9% throughout the forecast period.

The projections come amid growing pressure on the global economy from the ongoing conflict in the Middle East, elevated energy prices, geopolitical tensions and trade disruptions.

Sri Lanka’s external position is also expected to weaken, with the current account balance projected to shift from a surplus of 1.6% of gross domestic product (GDP) in 2025 to deficits of 0.5% in 2026 and 0.3% in 2027.

The IMF’s outlook points to continued economic expansion in Sri Lanka, but with slower growth, rising inflation and a narrowing external surplus giving way to current account deficits over the forecast period.

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