The Port of Colombo handles an estimated $30 billion in U.S.-related cargo annually and serves as a critical transshipment hub connecting South Asia with global markets, according to a press release from the U.S. Embassy in Sri Lanka.

The United States yesterday announced a $17 million investment to digitize operations at the Port of Colombo, strengthening one of South Asia’s busiest and most strategic maritime trade hubs. In partnership with the Sri Lanka Ports Authority (SLPA), the United States will introduce new digital systems to streamline port operations, using American technology to help move goods faster and reduce shipping delays and costs.The project will also strengthen Sri Lanka’s role in global trade while supporting American businesses, securing U.S. supply chains, and expanding commercial opportunities between the United States and Sri Lanka.

The U.S.-funded project will help the SLPA develop two connected digital systems—the Maritime Single Window and Port Community System—to reduce paperwork, improve coordination, and accelerate cargo processing through Port of Colombo. These systems will allow shipping companies, customs officials, immigration authorities, port operators, and businesses to share information electronically, replacing paperwork and disconnected processes that slow trade.The Port of Colombo handles an estimated $30 billion in U.S.-related cargo annually and serves as a critical transshipment hub connecting South Asia with global markets.

“American trade depends on ports that are efficient, reliable, and ready to meet the demands of modern commerce,” said U.S. Ambassador to Sri Lanka Eric Meyer.“More than half a million containers of U.S. inbound and outbound cargo move through the Port of Colombo each year, representing billions of dollars in trade. When goods move faster, and shipping costs come down, American companies are better positioned to compete and American consumers save money. This $17 million investment will strengthen the supply chains our economies depend on and support commercial opportunities for American technology companies.”

From Sri Lankan apparel shipped to American stores to American machinery, food, and everyday goods moving through global supply chains, delays at ports increase costs for businesses and consumers. As Sri Lanka expands port capacity, modern digital infrastructure will be essential to managing increased cargo volumes, reducing vessel turnaround times, and maintaining Colombo’s competitiveness as a regional maritime hub.“Colombo’s future as a regional maritime hub depends not only on expanding physical infrastructure but also on modernizing how our ports operate,” said Anura Karunathilaka, Minister of Ports and Civil Aviation.

“This project will help Sri Lanka improve trade facilitation, attract business, and strengthen our connections to international markets. We appreciate the United States’ support for a project that will contribute to Sri Lanka’s long-term economic competitiveness.”“Modernising the Port of Colombo is essential to Sri Lanka’s ambition to remain a leading maritime and logistics hub in the region,” said Dr Parakrama Dissanayake, Chairman of the Sri Lanka Ports Authority.

“These new digital systems will help us connect the many agencies and businesses involved in port operations, reduce unnecessary delays, and provide more predictable and efficient services to shipping lines and customers. We welcome this partnership with the United States as we prepare our ports for future growth.”