The Eastern Container Terminal (ECT) of the Colombo Port remains at the centre of a long-running debate over ownership, management, and strategic control, despite Ports Minister Anura Karunathilaka’s assurance that no decision has been taken to lease or transfer the facility to private hands.
Speaking in Parliament, Karunathilaka rejected claims that the government was preparing to privatize the state-owned terminal, stating that “no policy or administrative decision” had been made to lease the ECT or hand it over to the private sector. While technically accurate, the statement leaves unanswered broader questions about the future operating model of one of Sri Lanka’s most strategically important maritime assets.
The minister’s clarification appears to address direct privatization concerns rather than the possibility of private sector participation through operational partnerships, management arrangements, or investment agreements. This distinction has historically been at the heart of controversy surrounding the Colombo Port’s terminals.
The ECT became a politically sensitive issue after previous proposals involving foreign investment and terminal operations triggered strong opposition from trade unions and sections of the public. Earlier plans to involve an Indian and Japanese partnership in the terminal development were eventually abandoned amid political pressure. The government later moved forward with a state-led development approach.
Karunathilaka highlighted that the current challenge facing the terminal is not ownership but implementation. He said major container-handling equipment, including quay cranes and yard cranes, has already arrived, but procurement delays affected the completion of operational requirements.
The minister attributed these setbacks to the economic crisis of 2022, when foreign exchange shortages and financial constraints delayed advance payments for imported equipment. As a result, some required machinery was not delivered according to the original schedule.
One of the major remaining gaps is the acquisition of straddle carriers, specialized vehicles required to transport containers between quay cranes and storage yards. Without sufficient numbers of these machines, a container terminal cannot operate at its full planned capacity.
According to the minister, fresh bidding has been launched for the delayed equipment, with technical and financial evaluations nearing completion. A separate procurement process has also begun for an additional 15 straddle carriers.
However, questions remain over whether delays in fully commissioning the terminal could affect Colombo’s competitiveness as a regional shipping hub. Competing ports in the region have accelerated expansion projects, increasing pressure on Sri Lanka to maximize its deep-water capacity.
The minister’s statement is therefore accurate in its narrow meaning: there is no announced policy decision to privatize the ECT. But the wider debate is not only about ownership. It concerns how quickly the terminal can become fully operational, whether private investment may eventually be considered, and how Sri Lanka balances state control with the need for international expertise and capital.
For now, the ECT remains under state ownership, but its future role in Colombo’s maritime ambitions continues to be closely watched.
