Colombo Sees Uptick in Throughput amid Regional Trade Restriction

New trade restrictions between India and Pakistan have unexpectedly bolstered traffic through Sri Lanka’s Colombo port. As bilateral trade channels close, Colombo has emerged as an alternative transshipment hub for regional cargo. According to The Loadstar, container volumes at Colombo terminals rebounded strongly in May, reaching new highs, effectively reversing a previous decline this surge is attributed directly to redirection of cargo that would otherwise have passed through India or Pakistan.

The shift follows simultaneous import, export, and vessel-call bans from both governments—Indian regulations prevent Pakistani-origin cargo and vessels; Pakistan has imposed similar restrictions on Indian-origin goods and ships. As a result, container lines and freight forwarders have adapted by shifting routes and consolidating operations via Colombo.

While Sri Lanka enjoys a temporary throughput windfall, long-term ramifications remain uncertain. Colombo will need to manage capacity, congestion, and infrastructure strain to sustain the momentum. Meanwhile, India–Pakistan trade remains in flux, impacting regional logistics reshuffling via third-party hubs.