China Merchants Group (CMG), a state-owned Chinese company, announced on Monday that it will increase its investment in Sri Lanka to $2 billion by constructing a major logistics hub. This comes as Sri Lanka seeks to recover economically after defaulting on its foreign debt last year, which led to shortages of essentials and widespread anti-government protests.

The logistics complex at Colombo Port will cost an estimated $392 million to construct and represents the first significant foreign investment in Sri Lanka since the default. CMG will hold a 70% stake in the company responsible for building the complex, which is located at the only deep-sea port between Dubai and Singapore.

CMG described the project as South Asia’s largest logistics hub and expects it to be completed by the end of 2025. The company’s accumulated investment in Sri Lanka will exceed $2 billion, making it the largest foreign investment enterprise on the island.