Business
Lankan ports need investment and China steps in
By Rathindra Kuruwita
Despite innumerable warnings from the U.S. and its allies that China is the root of Sri Lanka’s economic woes, and that Chinese infrastructure development projects create security dilemmas for India, Colombo went ahead recently to sign an agreement with a China Merchants Port Holdings (CMPH)-led consortium to build a $392 million South Asia Commercial and Logistics Hub (SACL) at the Colombo port.
This project is said to be South Asia’s largest port-related logistics complex. A press release to mark the agreement said that the project “aligns with Sri Lanka’s national development strategy to transform the country into a major logistics center, identified as a key sector and a driving force for economic development in the National Policy Framework (NPF) 2019.”
Sri Lanka Ports Authority (SLPA) and private sector firm Access Engineering each hold 15 percent stakes in the project as well. The logistics hub is an eight-story, 5 million square foot facility with a storage capacity of 530,000 cubic meters (CBM). The construction of the facility is likely to commence in the second half of this year and be completed by the end of 2025.
The SACL is situated next to the Port City, also funded by the Chinese and the CBD Business Centre. It will also be linked to the Bandaranaike International Airport by the Port Access Elevated Highway.
“The five million square foot complex will offer the full gamut of logistics-related facilities and services such as Less than Container Load (LCL), Multi-Country Consolidation (MCC), Container Freight Station (CFS), General warehousing and various other value-added services,” the press release said.
The establishment of the center will improve the Port’s logistic and warehousing facilities and services, thereby boosting its competitiveness and reinforcing its position as a hub.
Sri Lanka aspires to be a regional logistics hub and over the past few decades, successive governments and private sector partners have poured billions of dollars into its ports. However, despite Sri Lanka’s lofty ambitions, its ports lag behind many countries and significant investments are needed to make it competitive.
In April, the World Bank released its Logistics Performance Index (LPI) and Sri Lanka scored an overall LPI score of 2.8. India had a score of 3.4. Sri Lanka also had a Logistics competence and quality score of 2.7 and an Infrastructure score of 2.4. Sri Lankan scores were similar to Rwanda and Solomon Islands and even Namibia has a better overall score.
Sri Lanka’s Sunday Times noted that the country’s port facilities are “nowhere near the top 10 high-caliber performers in world trade logistics services, although a parade of national leaders is continuing to peddle the myth of a global or even regional logistics hub, cargo hub, shipping hub and the like.”
In the World Bank’s Container Terminal Performance Index-2021, Colombo was placed 24th, higher than Jawaharlal Nehru Port (54) and Chennai (79) in India.In the past few decades, a port’s commercial success stems from a productivity advantage in conventional cargo-handling services, the value-added services it offers, or a blend of both.
Thus, the most productive ports are the ones that can handle large volumes of cargo and/or significantly reduce unit costs through efficient management and customers view value-added logistics services as an integral part of the supply chain. Given this trend, it is also obvious that in the future only the ports that have advantages in productivity and value-added service will prosper, while the ports that cannot will fall by the wayside. Therefore, Sri Lanka needs significant investments in its ports to ensure that they remain competitive and emerge as logistics hubs.
However, commercial viability is not the only reality in which Sri Lanka operates. Sri Lankan geopolitical analyst Asanga Abeyagoonasekera, who is a senior fellow at The Millennium Project, told The Diplomat that while the Chinese investments make sense in a commercial sense, they often draw the ire of the U.S. and India because Sri Lanka does not communicate its intent.
Indian journalists obviously see the SLCL as an example of China tightening its grip on Sri Lanka. As noted in a previous post, such reporting feeds into the narrative that China can use its port infrastructure in Sri Lanka and other South Asian nations for military use and that this poses a grave national security threat to India.
Sri Lanka’s strategy for addressing Indian concerns has involved giving Indian companies large-scale projects to counterbalance Chinese-funded ones. However, the Indian projects in Sri Lanka, almost all involving the Adani Group, are not adequate to meet Sri Lanka’s infrastructure investment needs.
Enjoying this article? Click here to subscribe for full access. Just $5 a month.The World Bank and the IMF have been moving away from infrastructure development for decades. Therefore, despite what their ideological beliefs are, Sri Lankan leaders ultimately end up turning to China for investments.
China was closed for almost three years due to their zero-covid policy and since lifting restrictions, Chinese companies, state-affiliated and private, have been traveling across the world for new business opportunities.
In recent months several such delegations have arrived in Sri Lanka and Chinese investments will probably spike leading to mass hysteria in Indian media. It is up to Sri Lanka to ensure that India and the U.S. understand that these investments are indeed commercial in nature.
Business
Ogilvy Group tops award tally at Dragons of Sri Lanka 2026
Nine awards, including two Golds, across disciplines recognise business-driven creativity
Ogilvy Group Sri Lanka delivered a standout performance at the recently concluded Dragons of Sri Lanka 2026 Awards, securing a total of nine awards comprising two Gold Dragons, one Silver Dragon and six Black Dragons, among the festival’s highest overall award tallies, a company news release said.
Gold Dragon wins for Phoenix Ogilvy and Ogilvy Digital, together with the seven additional recognitions across multiple categories, highlighted Ogilvy’s ability to combine creativity, strategic thinking and commercial effectiveness to deliver business results.
Organised by the 4As Sri Lanka, the third edition of Dragons of Sri Lanka shortlisted more than 50 agencies and corporates, making it one of the country’s most competitive marketing communications awards. These local awards, along with the chapters in Malaysia and Pakistan are part of the Dragons of Asia platform, one of the region’s leading programmes for marketing communications effectiveness, with entries being judged on strategy, originality, execution and measurable results.
Ogilvy Digital accounted for eight awards in total, including a Gold Dragon in the Business & Trade Marketing category, and a Silver Dragon in the Innovative Idea or Concept category. The Agency additionally received six Black Dragons across the categories of Innovative Idea or Concept, Business & Trade Marketing, Content Creation, Small Budget, Event or Experiential, and Brand Trial or Sales Generation.
Commenting on the achievement, Sajith Weerasinghe, Chief Operating Officer of Ogilvy Digital, said, “These recognitions reflect the breadth of capabilities we’ve built across strategy, creative, content, experience design, technology and performance marketing. The fact that the work was recognised across so many different disciplines demonstrates our ability to apply creativity to a wide range of business challenges and objectives. We’re proud that this achievement spans multiple clients, categories and types of work, reflecting both the versatility of our people and our commitment to delivering results.”
The Ogilvy Group’s second Gold Dragon win was Phoenix Ogilvy’s recognition in the Product Launch or Re-Launch category for the relaunch of American Premium Water. It was a multi-dimensional campaign which refreshed the identity and rejuvenated the positioning of one of Sri Lanka’s pioneering bottled drinking water brands, bolstering its 30-year heritage while connecting with a new generation of consumers.
Commenting on the win, Siddhartha Roy, Chief Operating Officer at Phoenix Ogilvy, said, “There’s always something special about reimagining a brand with a rich heritage. American Premium Water has been a trusted name in Sri Lanka for more than three decades, but the challenge was to make it relevant and compelling for a new generation of consumers. We created a new blueprint for growth for the brand’s positioning, proposition and visual identity, and manifested it through design, packaging and storytelling. To see that transformation recognised with a Gold Dragon, and more importantly reflected in the brand’s renewed momentum in the market, makes this a particularly rewarding achievement.”
The Ogilvy Group Sri Lanka operates across multiple marketing communication disciplines and comprises over 290 staff in creative, strategy, digital, media, public relations and integrated communications. As part of the global Ogilvy network, the Group partners with leading local and international brands to create integrated campaigns that build brands, influence behaviour and drive business growth.
Business
Musical tribute to Fr. Marcelline Jayakody held in California
A musical tribute celebrating the life and legacy of Rev. Fr. Marcelline Jayakody, OMI, renowned for his contribution to Sri Lankan arts, music, culture and religious harmony, was held in California with the participation of a large gathering of Sri Lankans.
Titled “Sri Lanka Rani Maniye,” the event was organised by the Sri Lankan Catholic Community in California (SLCCC) under the guidance of Rev. Fr. Rashmi M. Fernando, S.J.
The programme honoured Fr. Jayakody, affectionately known as “Pansale Piyathuma” (The Priest of the Temple), for his efforts to promote Buddhist-Catholic understanding, interfaith dialogue and a shared Sri Lankan identity.
The event brought together members of the Maha Sangha, the Consul General of Sri Lanka in Los Angeles, musicians, singers, donors, parents, children and members of the Sri Lankan community from Los Angeles and other parts of Southern California.
Music, song and Sri Lankan cultural traditions featured prominently, with organisers placing particular emphasis on introducing the country’s artistic and cultural heritage to younger generations of Sri Lankans growing up overseas.
The programme also highlighted the importance of community unity, religious harmony and mutual respect among Sri Lankans living abroad.
Rev. Fr. Fernando told the gathering that the event marked only the beginning of efforts that could achieve more through unity “for the pride and greater good of our motherland, Sri Lanka.”
The organisers thanked the performers, volunteers, donors and well-wishers who contributed to the event, which concluded as a celebration of Fr. Jayakody’s enduring cultural legacy and the Sri Lankan diaspora’s continuing connection with its homeland.
Business
Hayleys Fentons completes Rs. 1 bn manufacturing facility in Wathupitiwala
Hayleys Fentons Limited has completed construction of a state-of-the-art manufacturing facility for Shield Restraint Systems (Pvt) Ltd at the Wathupitiwala Export Processing Zone, with the project completed on schedule within approximately 14 months.
The project, valued at more than Rs. 1 billion, commenced with the laying of the foundation stone on January 7, 2025. It was undertaken by the project arm of Hayleys Fentons, with Design Consortium International (Pvt) Ltd serving as the principal design consultant.
The facility has been designed to meet international industry standards and incorporates advanced safety and energy-efficiency features. A pre-engineered building structural system was used to facilitate faster construction and optimise project costs.
The new facility will manufacture safety restraint systems for the international automotive industry through Shield Restraint Systems.
Hayleys Fentons Deputy Managing Director – Projects Sujith De Alwis said the timely completion of the project demonstrated the company’s engineering and project management capabilities and the ability of Sri Lankan construction expertise to meet stringent international standards.
Hayleys Mobility Executive Director Roshani Dharmaratne said the project required detailed planning, quality management and coordination across multiple disciplines.

Sujith De Alwis, Deputy Managing Director – Projects of Hayleys Fentons Limited and Roshani Dharmaratne, Executive Director of Hayleys Mobility Limited
Chairman Design Consortium Migara Alwis said the project further strengthens its portfolio in specialised industrial construction and supports investment linked to Sri Lanka’s participation in the global automotive supply chain.
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