Access Engineering Expects Rs. 310 Million Company-Level Loss from Logistics Project Exit
COLOMBO, October 21, 2026 — Access Engineering PLC expects to recognise a loss of approximately Rs. 310 million in its standalone company financial statements following the agreed termination of the South Asia Commercial and Logistics Hub Project, while anticipating no further material losses at Group level.
In a disclosure to the Colombo Stock Exchange, the company said shareholders of South Asia Commercial and Logistics Hub Limited had mutually agreed not to proceed with the development. The parties are entering into a settlement agreement to terminate the project and its related contracts in an orderly manner.
The disclosure, signed by Managing Director Rohana Fernando, attributed the decision to changes in external circumstances, including the project’s implementation environment and timetable, together with shareholders’ commercial considerations. The project was initially disclosed to the market on April 24, 2023.
Access Engineering holds a 15% stake in the project company and invested approximately Rs. 1.762 billion in the venture.
Under the settlement terms, the company expects to recover approximately Rs. 1.453 billion. This comprises a US$3.286 million settlement refund, equivalent to approximately Rs. 1.087 billion, and around Rs. 365 million representing its proportionate share of available distributable funds.
The estimated recovery is based on an indicative exchange rate of Rs. 331 per US dollar.
Access Engineering had already recognised approximately Rs. 387 million as its share of losses in its audited consolidated financial statements for the year ended March 31, 2026. This reduced the Group’s carrying value of the investment to approximately Rs. 1.38 billion.
Given the anticipated settlement proceeds, the company does not expect any further material financial losses in its consolidated Group accounts.
However, the investment remains recorded at cost in Access Engineering’s standalone company financial statements. Consequently, the difference between the original investment and the expected recovery is projected to result in a company-level loss of approximately Rs. 310 million.
Access Engineering said the final financial impact would depend on exchange rates prevailing on the payment dates, the finalisation of settlement arrangements and standard accounting adjustments.
