Sajith Premadasa warns of potential loss of 3,500 jobs as concerns grow over foreign investment following cancellation of Colombo logistics hub project
By The Pulseline News Desk
Opposition Leader Sajith Premadasa has warned that a possible relocation of HSBC Global Service Centre operations from Sri Lanka to the Philippines could cost the country thousands of jobs, raising fresh questions about its ability to attract and retain major foreign investors.
In a statement posted on X, Premadasa has said he had received information suggesting that the HSBC Global Service Centre could withdraw from Sri Lanka by December 2027, potentially resulting in the loss of approximately 3,000 direct jobs and 500 indirect jobs.
He has reportedly expressed hope that the reports were inaccurate but warned that a withdrawal of this scale, if confirmed, would represent a significant setback for the economy.
The Opposition Leader has questioned why Sri Lanka was facing the prospect of losing a major international business operation at a time when the country should be attracting substantial foreign direct investment (FDI) to support economic recovery, employment and growth.
The reported possibility of HSBC relocating its operations has not, based on the information cited in Premadasa’s statement, been established as a confirmed corporate decision.
Nevertheless, the warning comes at a time when concerns over the country’s investment climate have resurfaced following the cancellation of a major Chinese-backed logistics project at the Port of Colombo.
HSBC concerns and employment risks
The potential departure of HSBC’s Global Service Centre would raise concerns about Sri Lanka’s ability to retain international business services operations, which provide skilled employment and contribute to foreign exchange earnings.
The reported risk to 3,500 direct and indirect jobs would also have implications beyond the employees immediately affected, including households and businesses providing services to the centre.
International service centres can contribute to the economy through employment, professional training, technology transfer and demand for supporting services.
For Sri Lanka, retaining such operations is particularly important as the country seeks to expand its services exports and attract investment into higher-value economic activities.
Premadasa’s warning has therefore placed renewed attention on the conditions influencing multinational companies’ decisions on where to establish or maintain their operations.
However, the reasons behind the reported possibility of a relocation to the Philippines have not been established in the information provided.
Colombo logistics hub cancellation adds to concerns
The HSBC issue comes amid the cancellation of the proposed South Asia Commercial and Logistics Hub (SACLH), a US$392 million investment planned for the Port of Colombo by China Merchants Port Holdings.
The Chinese port operator has confirmed the termination of the project in a filing to the Hong Kong Stock Exchange on October 15, 2026.
The development represents a setback for a project intended to strengthen Colombo’s position as a regional logistics and transshipment centre. Under the original arrangement, the project was to be developed through a 50-year build-operate-transfer agreement.
China Merchants Port held a 70% stake through its subsidiary, Fortune Centre Group Limited, while the Sri Lanka Ports Authority (SLPA) and Access Engineering PLC each held a 15% stake.
The proposed five-storey complex was expected to become one of South Asia’s largest logistics facilities, supporting the expansion of port-related commercial activities.
The project had also received Strategic Development Project status in December 2023, making it eligible for tax concessions intended to support the investment.
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