U.S. announces $17 Million investment to digitize Port of Colombo
The United States has announced a $17 million investment to digitize operations at the Port of Colombo in Sri Lanka, aiming to reduce shipping delays, lower costs and improve trade efficiency.
The announcement was made today (October 16, 2026) by the U.S. Embassy in Sri Lanka, which said the project would be carried out in partnership with the Sri Lanka Ports Authority (SLPA), using American technology to modernize one of South Asia’s busiest maritime trade hubs.
The U.S.-funded project will introduce two connected digital systems, the Maritime Single Window and the Port Community System, to reduce paperwork, improve coordination and speed up cargo processing.
These systems will allow shipping companies, customs officials, immigration authorities, port operators and businesses to share information electronically, replacing manual paperwork and disconnected processes that currently slow down trade.
According to the U.S. Embassy, the Port of Colombo handles an estimated $30 billion in U.S.-related cargo annually and serves as a major transshipment hub connecting South Asia with global markets.
U.S. Ambassador to Sri Lanka Eric Meyer said more than 500,000 containers carrying U.S. imports and exports pass through the port each year, representing billions of dollars in trade.
He said improving port efficiency would help American companies remain competitive, reduce costs for consumers and strengthen supply chains between the two countries.
The Ambassador also noted that the investment would create commercial opportunities for American technology companies.
Delays at ports affect a wide range of goods, including Sri Lankan apparel exported to American markets and American machinery, food and other products transported through international supply chains.
As Sri Lanka expands its port capacity, modern digital systems are expected to help manage growing cargo volumes, reduce the time ships spend at the port and maintain Colombo’s competitiveness as a regional maritime hub.
Sri Lanka’s Minister of Ports and Civil Aviation, Anura Karunathilaka, welcomed the investment, saying the country’s future as a regional maritime hub depends on improving both physical infrastructure and digital operations.
He said the project would help Sri Lanka facilitate trade, attract new business and strengthen its connections with international markets, contributing to long-term economic competitiveness.
SLPA Chairman Dr. Parakrama Dissanayake said the new systems would improve coordination among government agencies, shipping companies and other businesses involved in port operations.
He added that reducing unnecessary delays and providing more reliable services would help prepare Sri Lanka’s ports for future growth.
The project will also allow American technology companies to compete for contracts to supply the hardware, software and technical expertise required to develop the systems.
According to the U.S. Embassy, an open and competitive selection process will be used to choose the project’s implementing partner.
The Embassy said the investment would also support U.S. economic and national security interests by strengthening important international trade routes, improving supply chain security and reinforcing Sri Lanka’s position as a key maritime trading partner in the Indian Ocean.