Sri Lanka’s Kankesanthurai Port upgrade awaits Indian grant terms
The Morning: The proposed renovation and expansion of the Kankesanthurai (KKS) Port remains in limbo as Sri Lanka continues to negotiate with India regarding the specifics of the proposed financial grant to be offered by India.
Speaking to The Sunday Morning Business, Sri Lanka Ports Authority (SLPA) Chairman Admiral (Retd) Sirimevan Ranasinghe revealed that renovations at the KKS Port were yet to begin, as Sri Lanka had not finalised the terms of the Memorandum of Understanding (MOU) to be signed between the parties as part of obtaining the Indian grant for the renovation and expansion of the KKS Port.
The SLPA Chairman stated that the President had instructed that this process be expedited and completed as quickly as possible. However, he acknowledged that negotiations over the terms of the MOU were still ongoing.
“It is most likely going to be a grant, but they stated a set amount. If the expenses exceed that figure as per the agreement, the Government of Sri Lanka has to fund the balance,” he noted.
Ranasinghe further stated that they did not expect the expenses for the renovation to exceed the amount to be granted by India by a significant margin.
OSL take:
Sri Lanka’s geographical positioning in the Indian Ocean near the international shipping lines and the many trade agreements as well as trade concessions enjoyed with many foreign countries have resulted in the expansion of the country’s maritime and fisheries industries. With Sri Lanka focused on becoming a maritime hub, the Sri Lankan government is looking at further uplifting and developing the country’s ports to support the growing maritime industry and the fisheries industry. These developments have resulted in the expansion of business/investment opportunities in the maritime and fisheries industries. There are multiple opportunities that include the development of infrastructure and supplementary infrastructure facilities to meet the expanding maritime and fisheries industries as well as the growing demand. The funds pledged by bilateral and multilateral development partners to uplift and develop Sri Lanka’s ports is also indicative of the increasing business potential of the country’s maritime and fisheries industries and related sectors. Given all these developments, foreign businesses/investors could confidently explore the growing business/investment opportunities in Sri Lanka’s maritime and fisheries industries.
| Article Code : | VBS/AT/20251021/Z_2 |