Chinese state-owned firm China Merchants Group has revealed plans to invest $2bn in Sri Lanka by constructing a major logistics hub.
The move comes as Sri Lanka looks to recover from its economic crash after defaulting on its foreign debt last year. The logistics centre project will bring China Merchants Group’s accumulated investment in Sri Lanka to over $2bn, which would make it the largest foreign investment enterprise on the island.
The project will be based at the Colombo Port and is expected to be completed by the end of 2025. China has loaned billions for projects in Asia, Africa and Europe under its Belt and Road Initiative.