Loans to develop the Kankesanthurai Harbour and the Northern section of the Colombo Port, have been approved in keeping with plans to improve the logistics and shipping sector in the island.
A dollar credit line agreement was signed between the Export-Import Bank in India and the Government of Sri Lanka (GOSL), for financing the rehabilitation of Kankesanthurai (KKS) Harbour.
The Government of India agreed to provide a line of credit amounting to US$ 45.27 million for financing the rehabilitation of the KKS Harbour, which is to be turned into a self-sustainable, commercial harbour, in line with the North East Economic Corridor concept.
The Sri Lanka Ports Authority (SLPA), will undertake the work and the new jetty along with the rehabilitation of the existing one is expected.
The loan for developing the Northern sections of the existing Colombo Port however has come in the form of a Technical Assistance (TA) loan from the Asian Development Bank (ADB).
ADB has provided US$ 1.5 million to prepare the National Port Master Plan and a TA loan of US$ 4.42 million for the detailed design and any other study identified projects in the Master plan study.
It had been recommended that the Northern side of the Colombo Port had more terminals for containers, energy sector, and logistic facilities.
The Cabinet papers for the two projects mentioned above, were submitted by Minister of Ports and Shipping Mahinda Samarasinghe and approved by the Cabinet this week.
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