Analysis of geopolitical and economic threats to the Port of Colombo

Abstract

The port of Colombo is the main seaport in Sri Lanka which operates as a transhipment hub in South Asia. However, the various scenarios that have been favourable to the port of Colombo to date, not remain the same. Identifying the geopolitical and economic threats to the port of Colombo is vital to safeguard and plan its future. The general objective of this study is to identify geopolitical and economic threats to the Port of Colombo. Twenty-six variables were identified as threats to the port of Colombo and their impacts discussed through a literature survey. Explorative factor analysis and reliability analysis were conducted to get the result. Among twenty-six variables, twenty-three remain threats to the port. Results show three dimensions of threats : “Threats from operational aspects”, “Threats from policy-making decisions”, and “Threats associated with the Future”. Finally, the study concludes that, with rising geopolitical and economic threats, port of Colombo may not raise Sri Lanka into a logistic hub in 2025.