A storm is brewing in the Indian Ocean and it could spell disaster for Sri Lanka’s prized Colombo Port. With the opening of India’s new Vizhinjam transshipment hub in Kerala, Colombo’s dominance as the region’s maritime powerhouse is under threat like never before.
Sean Van Dort, President of the Global Shippers’ Forum, issued a stark warning: “Sri Lanka will soon become just a feeder port. Mother ships are heading straight to India.”
The heart of Colombo’s economy lies in transshipment operations with over 70% of its container traffic connected to Indian and Bangladeshi cargo. But the tide is turning fast. India’s aggressive expansion, spearheaded by the Adani Group’s Western Container Terminal and the Vizhinjam port project, is drawing major shipping lines away from Sri Lanka.
Van Dort stressed that if Colombo wants to stay afloat, drastic changes are needed. “Efficiency is key, and pricing must be competitive. If not, ships will simply stop elsewhere.”
While the Sri Lanka Ports Authority (SLPA) has welcomed terminal investments in theory, trade union resistance and political red tape have thrown roadblocks at every turn. “Shipping lines want to invest, but Colombo is making it difficult,” Van Dort emphasized.
India, meanwhile, is charging ahead. Karan Adani, Managing Director of Adani Ports, told The Economic Times that Vizhinjam will soon handle all of India’s transshipment cargo a move that could save Indian ports up to $220 million annually that currently flows to foreign harbors like Colombo.
Although SLPA Chairman Admiral Sirimevan Ranasinghe downplayed the threat, citing Colombo’s 7.8 million containers in 2024 compared to Vizhinjam’s target of 3.5 million by 2027, experts warn that complacency could be fatal. The direction of regional shipping is changing and Sri Lanka risks being left behind.
If Colombo doesn’t act fast, its days as South Asia’s maritime kingpin may soon be over.
