News
West Asian conflict benefits China-managed H’tota Port
The ongoing West Asia war, triggered by joint Israel-US attack on Iran on 28 Februar, has benefited the China-run Hambantota International Port (HIP).With Iran imposing restrictions on the Strait of Hormuz shipping, in retaliation for unprovoked attack, thereby choking vital shipping routes, particularly for crude oil and refined oil products, HIP situated, along the East-West shipping corridor, has received the anticipated attention.
Soon after the sinking of an unarmed Iranian frigate, just outside Sri Lanka’s territorial waters, in India’s backyard, Indian External Affairs Minister Subrahmanyam Jaishankar categorised HIP as a foreign military base, along with Diego Garcia, Bahrain and Djibouti, where both the US and China maintained major bases.
HIP, in a press release issued on Sunday (05), declared that the Port has significantly expanded its operational capacity, in response to a sharp surge in global shipping volumes, resulting from the West Asia conflict.
The company asserted that the developing situation reinforced its position as a key alternative hub along the East–West shipping corridor.
The port has doubled its Roll-on/Roll-off (RoRo) yard capacity and increased its container yard capacity by 30%, as shipping lines divert operations away from disrupted routes in search of stable and efficient alternatives.
HIP is situated just 10 nautical miles from the main East–West shipping route, allowing vessels to divert with minimal deviation while maintaining schedule integrity.
The Chinese government-owned China Merchant Port Holdings (CMPort) under controversial circumstances acquired controlling interests of the Hambantota port in 2017 during the Yahapalanaya administration. Although the Sri Lankan government repeatedly said that Sri Lanka was paid USD 1.12 bn according to the HIP website CMPort invested $974 mn in the HIP and held 85 percent of the shares.
The 2017 agreement granted CMPort a 99-year lease to develop, manage and operate the Port area. The Supreme Court dismissed a fundamental rights petition filed by lawmaker Vasudeva Nanayakkara pointing out that the original agreements pertaining to the Hambantota port had been signed in 2012 and 2013 during Mahinda Rajapaksa’s tenure as the president when he was a member of the Rajapaksa Cabinet.
The HIP press release quoted CEO of HIP Wilson Qu as having said: “What we are witnessing today is a structural shift in global shipping patterns. At HIP, we have focused on building the capacity and operational agility to respond to such changes. Our ability to scale quickly, combined with our location, allows us to support global shipping lines when reliability becomes critical. Looking ahead, we will continue to invest in infrastructure and capabilities to strengthen Hambantota’s role as a key logistics and transshipment hub in the region.”
The rise in both vehicle transshipment and container volumes has driven yard utilization levels to the highest in HIP’s history, highlighting the scale of ongoing supply chain disruptions and the port’s growing strategic importance in global trade.
To accommodate increased throughput, HIP has rapidly expanded yard space across both cargo segments, enabling it to handle higher volumes while maintaining operational efficiency and minimizing congestion. Expanding capacity within a short time frame in a live port environment presents considerable operational and technical challenges and requires significant investment. However, through close coordination across management, engineering and operational teams, HIP was able to deliver these enhancements in step with rising demand.
The HIP statement added: “The expansion reflects Hambantota International Port’s continued development as a resilient logistics platform in the Indian Ocean, as geopolitical developments reshape established maritime routes and increase demand for alternative hubs. As infrastructure scales in tandem with demand, HIP is increasingly positioned to capture a larger share of regional transshipment volumes while supporting the continuity of global supply chains.”
Amidst the continuing uncertainty caused by war and growing threat to international shipping the Hambantota International Port Group (HIPG) the owning group of HIP recently finalised an agreement to invest USD 108 mn to procure new container handling equipment- 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.
By Shamindra Ferdinando
News
All set for Colombo rally against govt.’s tax policies
The Frontline Socialist Party-backed People’s Struggle Movement is set to stage a protest march in Colombo today (03) against what it describes as the growing tax burden on the public and the rising cost of living.
The organisers are due to commence the “Colombo March Against Unjust Taxes” at noon from Campbell Park, Borella. The FSP has also been mobilising support for the protest in Colombo and its suburbs in the run-up to the event.
People’s Struggle Movement National Executive Council member Wasantha Mudalige, speaking at a media briefing in Nugegoda yesterday (02), called on the public to join the protest, saying the movement intended to bring the tax burden faced by ordinary people to the forefront.
Mudalige alleged that successive tax measures had placed an excessive burden on households, particularly through taxes on food and educational items. He also criticised the Government over what he described as the high cost of basic food items and the difficulties faced by parents in meeting their children’s educational expenses.
He accused the Opposition of failing to adequately address the issue, claiming that opposition parties raised such concerns, mainly during election periods.
Mudalige also criticised the Government for what he described as a departure from promises made before the 2024 presidential election regarding taxes on educational equipment.
He questioned the tax burden on food items, citing figures of Rs. 100 per kilogramme on dried sprats, Rs. 310 per kilogramme on chicken and Rs. 11 per egg.
He further alleged that while ordinary people were bearing a heavy tax burden, wealthy groups were receiving tax concessions. He also criticised the Government’s economic programme and its implementation of measures associated with the International Monetary Fund (IMF).
The movement has framed today’s protest as part of a broader campaign over the cost of living and taxation. The People’s Struggle Alliance has separately announced that the Campbell Park demonstration will be the first in a series of public actions, with further protests planned in November.
Mudalige said the movement would continue to take the issue to the streets and urged the public to participate in today’s demonstration.
People’s Struggle Movement National Executive Council member Jayantha Amarasinghe also addressed the press.
News
Yoshitha R money laundering trial postponed
The Colombo High Court yesterday postponed the trial in the case filed under the Prevention of Money Laundering Act against Yoshitha Rajapaksa, son of former President Mahinda Rajapaksa.
The case was taken up before Colombo High Court Judge Udesh Ranatunga, with Yoshitha Rajapaksa, who is currently out on bail, appearing in court.
The trial was postponed as the President’s Counsel appearing for the defence was indisposed.
The Attorney General has filed the case against Rajapaksa, alleging that he committed an offence under the Prevention of Money Laundering Act by purchasing five plots of land in Dehiwala and Ratmalana, worth more than Rs. 73 million.
News
Lankan troops test mettle in Russian war games
A contingent of the Sri Lanka Army, comprising 20 officers and 55 other ranks, participated in the combined military exercise ‘Wolverine Path II–2026’, conducted with the Armed Forces of the Russian Federation in Vladivostok, Russia, from September 18 to 25.
According to the Ministry of Defence, the exercise primarily focused on counter-terrorism operations and provided participating troops with training in a challenging combined operational environment.
The exercise included a range of tactical activities, including heli-rappelling, close-quarters battle (CQB), ambush operations, sniper firing, drone operations, buggy training and combat medical support.
The Ministry said the training enabled Sri Lankan troops to further develop their combat skills, tactical coordination and operational readiness.
It also provided an opportunity for the two militaries to exchange professional knowledge, operational experience and tactical expertise. Sri Lankan personnel gained exposure to training methodologies, tactical approaches and operational practices adopted by the Russian Armed Forces, the Ministry said.
The participation also enabled the Sri Lankan contingent to identify lessons from the joint training and share its own experiences with the Russian military.
The Sri Lankan contingent returned to the country following the exercise and arrived at Mattala Rajapaksa International Airport on September 28.
The Ministry said participation in the exercise contributed to enhancing the professional knowledge, tactical awareness and operational preparedness of Army personnel while promoting military-to-military cooperation, mutual understanding and professional relations between Sri Lanka and Russia.
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