Opposition Leader Sajith Premadasa has raised concerns over reports that the HSBC Global Service Centre may relocate its operations from Sri Lanka to the Philippines, warning that such a move could result in significant job losses and an economic setback for the country.
In a statement on ‘X’, Premadasa said he had received information suggesting that the HSBC Global Service Centre may withdraw from Sri Lanka by December 2027, potentially resulting in the loss of 3,000 direct jobs and 500 indirect jobs.
However, the Opposition Leader expressed hope that the information was inaccurate, warning that such a withdrawal, if confirmed, would have serious consequences for Sri Lanka’s economy.
Questioning the country’s investment climate, Premadasa said Sri Lanka should be attracting substantial foreign direct investment (FDI) rather than witnessing the withdrawal of major foreign investors.
His remarks come amid the withdrawal of China Merchants Port Holdings from a proposed US$ 392 million logistics hub project at the Port of Colombo.
The Chinese port operator confirmed the termination of the South Asia Commercial and Logistics Hub (SACLH) project in a filing to the Hong Kong Stock Exchange on October 15, 2026.
The project, which was expected to become one of South Asia’s largest logistics complexes, was planned under a 50-year build-operate-transfer arrangement.
China Merchants Port held a 70% stake in the project through its subsidiary, Fortune Centre Group Limited, while the Sri Lanka Ports Authority (SLPA) and Access Engineering PLC each held 15%.
According to the filing, the project was cancelled due to changes in external circumstances, implementation challenges and commercial considerations.
Following the cancellation, the SLPA agreed to pay US$ 21.905 million to the project company as part of a settlement agreement.
The proposed five-storey logistics complex had received Strategic Development Project status in December 2023, with several tax concessions granted to support the investment.
However, the project faced implementation delays, as well as reported land and regulatory issues, preventing it from progressing as planned.
The SLPA is expected to seek fresh investment proposals for the land following the cancellation of the project. (Newswire)
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