Sri Lanka, strategically located in South Asia, has the potential to become a significant hub for international maritime trade. However, the current port infrastructure, particularly in Colombo, faces capacity constraints that limit its ability to accommodate larger vessels and manage increasing container traffic. This study evaluates the impact of private sector participation on the operational efficiency of Colombo’s container terminals - Jaya Container Terminal (JCT), South Asia Gateway Terminal (SAGT), and Colombo International Container Terminal (CICT). Using Key Performance Indicators (KPIs) and Data Envelopment Analysis (DEA), the study found that private sector involvement significantly enhances terminal efficiency. SAGT, a privately operated terminal, exhibited the highest overall efficiency, while CICT demonstrated the highest productivity. JCT, though publicly operated, showed commendable performance but lagged behind the private terminals. The findings emphasize the value of public-private partnerships (PPPs) in optimizing port operations, offering critical insights for policymakers and stakeholders aiming to strengthen Sri Lanka’s maritime economy.