The Hambantota International Port Group (HIPG) has clarified that the backlog of imported vehicles at Hambantota International Port is primarily the result of importer-side delays rather than operational issues at the port.

The statement follows media reports claiming that more than 1,000 imported vehicles remained uncleared due to pending documentation and unpaid port-related charges.

According to HIPG, the port continues to operate as a key regional roll-on/roll-off (RoRo) transshipment hub, with a focus on moving cargo efficiently rather than providing long-term vehicle storage.

Why Are Vehicles Remaining at the Port?

HIPG said prolonged storage is mainly linked to issues outside the port's control, including:

• Documentation delays.
• Banking procedures.
• Financing arrangements.
• Administrative processing by importers.

The company stated that ports are designed to facilitate cargo movement and that long-term storage reduces valuable operational space needed for incoming shipments.

Current Vehicle Numbers

According to HIPG:

• More than 50,000 vehicles are currently being handled at the port.
• 1,278 imported vehicles have remained at the port for more than three months.
• 581 vehicles have been stored for over one year.

The company said all of these long-stay vehicles belong to Sri Lanka's domestic import sector.

Impact of Sri Lanka's Import Restrictions

HIPG said many of the delayed vehicles are linked to Sri Lanka's vehicle import restrictions introduced during the COVID-19 pandemic.

The country resumed vehicle imports in 2025 after nearly five years of restrictions.

According to the company:

• Around 400 vehicles stored for more than a year were imported before imports resumed in 2025.
• Approximately 175 vehicles date back to the period before the import ban.
• 178 vehicles have remained at the port since before HIPG assumed management in December 2017.

Port Says It Has Expanded Storage Benefits

HIPG noted that imported vehicles currently receive:

• 10 days of free storage.
• Transshipment cargo receives 21 days of free storage.

The operator said that before it took over management of the port, customers received only three days of free storage.

It also stated that it has granted demurrage waivers and concessions for thousands of vehicles that remained at the port for extended periods before being cleared or re-exported.

Hambantota Port and Chinese Investment

Hambantota International Port is operated through a public-private partnership between the Sri Lanka Ports Authority and China Merchants Port Holdings, with the Chinese company holding an 85% stake.

The port was constructed largely with Chinese loans and was leased to China Merchants Port Holdings in 2017 under a 99-year lease after Sri Lanka faced debt repayment challenges.

The arrangement has been cited by some governments and analysts as an example of China's alleged "debt-trap diplomacy," a characterization that Beijing has consistently rejected.

Why This Matters

Hambantota Port is strategically located along one of the world's busiest maritime trade routes and serves as an important regional automotive transshipment hub. The clarification seeks to reassure shipping companies and logistics operators that current vehicle backlogs are linked to importer-side administrative processes rather than inefficiencies in port operations. The issue also highlights the broader challenges Sri Lanka continues to face as vehicle imports recover following years of pandemic-era restrictions.

Frequently Asked Questions (FAQs)

Why are vehicles backed up at Hambantota Port?

According to HIPG, the backlog is mainly due to importer-side documentation, financing and administrative delays rather than operational issues at the port.

How many vehicles are currently at Hambantota Port?

HIPG said it is handling more than 50,000 vehicles, including domestic imports and transshipment cargo.

What is a RoRo port?

A roll-on/roll-off (RoRo) port is designed for wheeled cargo such as cars, trucks and buses, allowing vehicles to be driven directly onto and off ships without cranes.

Who operates Hambantota Port?

The port is managed by Hambantota International Port Group (HIPG), a joint venture between the Sri Lanka Ports Authority and China Merchants Port Holdings.

Why is Hambantota Port often discussed internationally?

The port's 99-year lease to a Chinese state-owned company after Sri Lanka's debt difficulties has made it a focal point in debates over China's overseas infrastructure investments and regional geopolitics.