A parliamentary oversight committee has expressed concern that delays in expanding the Port of Colombo could weaken Sri Lanka's maritime position as neighbouring ports, particularly India's Vizhinjam facility, rapidly increase their capacity.

A parliamentary committee has raised alarm over stalled expansion projects at the Port of Colombo, warning that slower development could cost the country its standing as South Asia's primary transshipment hub. The Sectoral Oversight Committee on Infrastructure and Strategic Development reviewed the Sri Lanka Ports Authority's performance and found that implementation delays, procurement bottlenecks, and project management issues are hampering capacity growth at a critical moment.

The concern centres on intensifying regional competition. India's Vizhinjam International Seaport in Kerala is being developed as a deep-water transshipment facility capable of handling the largest container vessels, with Mediterranean Shipping Company already investing in the hub. Meanwhile, capacity expansion is underway at other ports across the region. The Port of Colombo currently relies heavily on transshipment cargo, which accounts for approximately 84.5 percent of its container throughput and represents a significant source of foreign exchange and employment for Sri Lanka.

The committee called for a comprehensive audit to identify the causes of project delays and establish accountability, while demanding stronger procurement practices and project management oversight. Members also emphasised the need for faster implementation of strategic initiatives at regional ports including Hambantota, Galle, and Kankesanthurai. The Central Bank of Sri Lanka has previously cautioned that geographic advantage alone is insufficient to maintain Colombo's competitive edge, underscoring the need for sustained investment and operational improvements.

Although the Port of Colombo is expected to double its container handling capacity to 15 million Twenty-Foot Equivalent Units by end of 2026, the committee stressed that further delays risk eroding revenues, logistics services, and broader economic benefits. The committee concluded by calling for greater transparency, institutional accountability, and accelerated project delivery to ensure long-term profitability and competitiveness.