Sri Lanka Ports Authority expresses keenness to enhance connectivity with Indian ports
The Indian media quoting Chairman of Sri Lanka Ports Authority (SLPA), Kavan Ratnayake has reported that Sri Lanka is keen on enhancing connectivity with Indian ports using ferry services to facilitate easier trade and tourism.
“If the two countries can set up a ferry service connecting Kankesanthurai Port (KKS) in Jaffna with Karaikal near Puducherry, and similarly between Colombo and Tuticorin in South India, there is scope for increased trade activity and tourism,” he has told The Hindu.
The SLPA Chairman has said the ferry connection would primarily facilitate tourism and small-scale trade both ways.
“It will help especially with Buddhist tourism from the south of the island, and by extension people-to-people connections,” he has said.
Further, the KKS Port will facilitate increased trade opportunities for communities living in proximity to the port and reduce the cost of road and rail transport for bulk items such as cement. In 2011, India and Sri Lanka launched a ferry service between Tuticorin and Colombo, but it was soon terminated after private operators running it said it was not commercially viable, The Hindu has reported.
The proposals, according to the Chairman, fits into the SLPA’s broader vision of developing Sri Lanka into a global logistics hub, given its strategic location in the Indian Ocean, in close proximity to key, international sea routes.
The Indian media has reported that Sri Lanka is currently upgrading the KKS harbour with Indian assistance of US$ 45.27 million, through an agreement signed with the Export-Import Bank of India.
India is also a partner in an initiative aimed at developing the East Container Terminal (ECT) at the Colombo Port.
In May this year, Sri Lanka, Japan and India signed a Memorandum of Cooperation (MoC) to jointly develop the East Container Terminal (ECT) at the Colombo Port, at an estimated cost of up to US$ 700 million, reports further stated.
As per the agreement signed, Sri Lanka will have 51% stake in the terminal operating company, while the stakes to be held by Japan and India are being discussed, Ratnayaka has told the Indian media outlet.
“The [joint] working group negotiating the specifics is scheduled to meet soon. If all goes as per schedule, we should have the cranes on the quays by August next year.”
OSL take:
The government of Sri Lanka is aiming at achieving maritime hub status for the country in the IndianOcean region and has set up many programmes to achieve this goal. As stated by the Chairman of SLPA, enhancing access to Indian ports would further help in this aspect as well as give a boost to Sri Lanka’s tourism sector. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka’s expanding maritime and tourism sectors.
| Article Code : | VBS/AT/17072019/Z_5 |