Sri Lanka’s Colombo Port has development opportunities worth Rs. 1 billion says ADB
The Asian Development Bank (ADB) has reportedly stated that development of the port in Sri Lanka’s capital, Colombo, will require Rs. 1.03 billion in investments until 2026.
The ADB has made this observation in a media release.
The investment required to complete and equip the Eastern Terminal will be US$ 430 million, the ADB has said.
According to reports, last month, the government had estimated a US$ 500 million investment to equip the terminal, which would process 2.4 million containers annually.
President’s Secretary P. B. Jayasundera in December had said the government was hoping for Japan and India to develop the East Terminal under a build-operate-transfer (BOT) programme.
At end-January, Sri Lanka Ports Authority (SLPA) Chairman Daya Ratnayake has been quoted as saying that the Eastern Terminal would be operational in three months.
However, no investor has yet been found for the port, the ADB has further stated.
The ADB has further noted that the Western Terminal with a capacity of 2.4 million containers, which the government is planning to construct, will require US$ 600 million in investments as well.
The Eastern and Western Terminals fall under the Colombo Port Expansion Project, under which the Southern Terminal is already being operated in a BOT basis by the China-owned Colombo International Container Terminal (CICT). China Merchants Port Holdings owns 85 percent of CICT, with investments of over US$ 600 million.
Colombo is a transshipment port for the South Asian region.
The ADB has added that it will invest US$ 200 million in a port and logistics development project, to enhance commercial operations of the Sri Lanka Ports Authority, although funding may not be finalized.
OSL take:
The ongoing development programme in Sri Lanka has expanded business opportunities in all key economic sectors in the country. Given Sri Lanka’s target of achieving maritime hub status for the country, there are many business/investment opportunities in Sri Lanka’s maritime and ports sectors. It is being further backed by the ADB report that noted investment opportunities in Sri Lanka’s Colombo Port. Foreign businesses/investors could therefore confidently explore business opportunities in Sri Lanka’s maritime and ports sectors.
| Article Code : | VBS/AT/20200304/Z_1 |