Sri Lanka Ports Authority Targets 10 Million TEUs in 2026: Modernisation Drive Gains Pace, but Can Colombo Outcompete Regional Rivals?
Colombo —
Buoyed by a historic performance in 2025, the Sri Lanka Ports Authority (SLPA) has set an ambitious operational target of handling 10 million TEUs in 2026, positioning the Port of Colombo for its most significant capacity leap to date. The target comes amid a broad-based modernisation programme encompassing employee training, technology adoption, terminal optimisation, and institutional reform, as all port terminals are mobilised to operate at peak efficiency.
Yet, as Colombo prepares for this next phase of growth, a fundamental strategic question remains unresolved: how can the Sri Lanka Ports Authority sustainably compete with increasingly aggressive regional ports, and how can Colombo add differentiated value within evolving international trade routes?
Record Performance in 2025: A Strong Foundation
The Port of Colombo reached a defining milestone in 2025, recording a throughput of 8,291,178 TEUs, the highest container volume in its history. This marked a significant year-on-year increase from 7,792,069 TEUs in 2024, reaffirming Colombo’s status as South Asia’s leading container transhipment hub.
The growth was achieved despite uneven global trade conditions, shipping line consolidation, route realignments, and persistent cost pressures across maritime supply chains. Industry analysts note that Colombo’s resilience during this period reflects disciplined investment, operational consistency, and sustained confidence from major global shipping alliances.
All terminals within the port ecosystem contributed to the 2025 outcome. SLPA-operated terminals continued to anchor volumes by supporting feeder and mainline services. Colombo International Container Terminals (CICT) reinforced its role as Colombo’s deep-water gateway for ultra-large container vessels, while South Asia Gateway Terminals (SAGT) maintained strong performance in regional and transhipment cargo. Meanwhile, progress at the Colombo West International Terminal (CWIT)—led by the Adani Group in partnership with local stakeholders—has strengthened future capacity and underscored long-term investor confidence in Colombo’s strategic relevance.
The 2026 Target: Scaling from Performance to Transformation
The SLPA’s 10 million TEU target for 2026 represents more than incremental growth. It signals an intent to transition Colombo from a high-performing regional hub into a globally competitive, technology-driven maritime logistics platform.
Key elements of this transformation include:
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Comprehensive workforce training programmes, aimed at improving productivity, safety standards, and digital literacy across operational and supervisory levels.
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Introduction of advanced port technologies, including terminal operating system upgrades, automation of yard operations, predictive maintenance tools, and enhanced vessel traffic management systems.
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Optimisation of berth utilisation and turnaround times, enabling higher vessel call frequency without proportionate increases in congestion.
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Closer integration between terminals, customs, shipping agents, and logistics providers to reduce dwell time and administrative friction.
SLPA officials argue that productivity gains, rather than mere capacity expansion, will be the decisive factor in achieving the 2026 target.
Competing in a Crowded Regional Landscape
While Colombo’s performance trajectory is strong, regional competition is intensifying at an unprecedented pace. Ports such as Mundra, Nhava Sheva, Krishnapatnam, and Vizhinjam in India, alongside Jebel Ali, Salalah, and emerging East African hubs, are aggressively expanding capacity, offering competitive tariffs, and leveraging state-backed logistics corridors.
India, in particular, poses both a challenge and an opportunity. New Indian mega-ports are increasingly capable of retaining cargo that once flowed through Colombo for transhipment. At the same time, India’s expanding trade volumes and manufacturing output ensure continued demand for efficient hub ports in the Indian Ocean.
For Colombo, competing purely on price is neither viable nor desirable. Instead, experts argue that the SLPA must focus on reliability, neutrality, deep-water capability, and network connectivity—areas where Colombo retains structural advantages.
Adding Value Through Strategic Trade Routes
A critical pillar of Colombo’s future strategy lies in leveraging emerging international trade corridors, notably the India–Russia trade route, which is gaining relevance amid shifting geopolitical alignments and sanctions-driven supply chain reconfiguration.
As trade between South Asia, Eurasia, and East Asia evolves, Colombo is uniquely positioned as a mid-ocean transhipment and consolidation hub, capable of aggregating cargo flows, supporting multimodal logistics, and offering value-added services such as:
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Cargo consolidation and deconsolidation
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Reefer handling and cold-chain logistics
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Ship repair, bunkering, and maritime services
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Regional distribution and re-export operations
By aligning port operations with these routes, Colombo can move beyond being a passive transhipment point to becoming an active trade enabler.
Leveraging Sri Lanka’s Maritime Geography
One of Colombo’s most underutilised advantages remains its geography. More than 60,000 commercial vessels transit Sri Lankan waters annually, making the island one of the busiest maritime crossroads in the world.
The challenge for SLPA is converting this passing traffic into economic value. This requires:
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Enhanced ship services (bunkering, crew changes, repairs) to incentivise unscheduled calls
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Digital platforms to market Colombo’s services directly to shipping lines in real time
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Regulatory reforms to ensure fast, predictable port clearance and service delivery
Industry stakeholders note that even marginal increases in service uptake from transiting vessels could translate into significant revenue and employment gains.
Technology and Human Capital as Competitive Differentiators
Modern ports increasingly compete on data, speed, and integration, not just cranes and berths. SLPA’s emphasis on employee training and technology adoption is therefore strategically sound, but execution will be critical.
Automation and digitalisation must be accompanied by workforce upskilling to avoid productivity bottlenecks and labour resistance. Colombo’s long-term competitiveness will depend on its ability to build a technically proficient, commercially aware port workforce aligned with global best practices.
A Legacy of Engineering, A Future of Strategy
Colombo’s current success is rooted in a long tradition of maritime engineering and structured planning. The modern harbour traces its origins to the late nineteenth century, when British engineer Sir John Coode transformed Colombo from an exposed roadstead into a sheltered deep-water port through the construction of permanent breakwaters. That emphasis on durable infrastructure and long-term thinking continues to shape Colombo’s development philosophy today.
However, the next phase of growth will be driven less by concrete and steel, and more by strategy, governance, and international positioning.
Opportunity with Urgency
The SLPA’s 10 million TEU target for 2026 is achievable, but not guaranteed. Colombo’s 2025 performance demonstrates operational maturity and market confidence, yet regional competition and shifting trade dynamics leave little room for complacency.
To succeed, the Sri Lanka Ports Authority must move decisively to:
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Differentiate Colombo beyond price competition
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Embed itself within emerging international trade routes
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Monetise its strategic maritime geography
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Invest in people and technology with equal urgency
The Port of Colombo has proven it can perform at scale. The challenge now is to ensure that scale translates into sustained competitiveness and national economic value in an increasingly demanding global maritime market.