The state-owned SLPA reported in February that it had handled a record volume of containers in January. The total of 205,539 TEUs handled in that month surpassed the previous record, set in August 2010, and represented year-on-year growth of 24%. The SLPA announced that when traffic handled by the private South Asia Gateway Terminals operator is included, Colombo's port processed 366,961 TEUs in January, up by 11.8% year on year. In 2010 the port handled 4m containers, up from 3.5m in 2009.

Sri Lanka's domestic trade capacity is being boosted as a number of landmark infrastructure projects are completed. In February a new railway linking the southern cities of Galle and Matara was inaugurated. The 42 km of track marks the first phase of an investment project funded in part by a US$167m loan from the Indian government. In contrast to the island's traditionally slow rail network, the new track will allow trains to reach speeds of over 100 km/h. Further phases of the project will take the line to Hikkaduwa, Kalutara South and Maradana in Colombo.

Meanwhile, the government has expressed confidence that the portion of the southern expressway linking Kottawa (a suburb near Colombo) and Galle should be open by August. The road will be a toll route and should enable vehicles to reach speeds of 100 km/h. When finally completed, the southern expressway should stretch all the way from Colombo to the southern port city of Hambantota.