Colombo Port strengthens position as regional transhipment hub

The Port of Colombo is experiencing strong growth in mid 2026, with almost the entire port operating near full utilisation while the Colombo West International Terminal reached full capacity utilisation within its first year of operations, John Keells Holdings Chairperson Krishan Balendra said at a recent investor webinar.

Balendra stated that the port is seeing a robust performance in mid 2026, adding that the bunkering business benefited from the upturn in volumes and activity at the port.

Commenting on the performance, John Keells Holdings Deputy Chairperson and Group Finance Director Gihan Cooray noted that the port sector is expected to grow further as the terminal ramped up to around 460,000 TEUs, against an installed capacity of about 1.6 million TEUs for Phase 1. Gihan Cooray further pointed out that overall volumes remained steady, with growth driven by additional capacity from the new terminal, while domestic cargo movement increased from around 10% to 13%.

According to a report released by the terminal, transhipment volumes increased, with 3.7 million TEUs handled during the first 5 months. Gihan Cooray mentioned that along with added capacity, Colombo strengthened its position as a transhipment hub, adding that despite trade pattern disruptions from the Middle East conflict, the growth reflects permanent demand rather than a temporary benefit.

Sri Lanka Ports Authority data revealed that the port maintained strong double-digit growth by recording 2,915,004 TEUs for the first 4 months of 2026, representing a 13.9% increase over the 2,559,847 TEUs handled during the same period in 2025. The port remains on track to cross 10 million TEUs in deep-water handling capacity as new terminal operations ramp up by the end of 2026.

The terminal report added that the port stands ready for further capacity improvements, enhancing operational efficiency and support for green cargo handling operations. As Phase 2 progresses toward expected completion at the end of 2026, the terminal will continue to improve capabilities, strengthen Sri Lanka as a regional maritime and logistics hub, and contribute to long-term economic growth.