By: Staff Writer
August 10, Colombo (LNW): The long-delayed redevelopment of the Kankesanthurai (KKS) Port has entered its final administrative phase, with negotiations between Sri Lanka and India now centred on the legal framework governing a project that has become as much a political story as an infrastructure initiative.
Although feasibility studies, engineering designs, and key technical decisions have already been completed, physical construction remains on hold pending the signing of a Memorandum of Understanding (MoU) between the two governments.
Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku confirmed that the draft MoU has undergone scrutiny by the Attorney General’s Department before being returned to the Indian High Commission for final verification.
“We have complied with the Attorney General’s observations and submitted them to the Indian High Commission. Verification of the conditions is now taking place,” he said.
The project has attracted renewed attention after the current Government led by President Anura Kumara Dissanayake secured India’s agreement to convert earlier financial assistance into a full grant valued between US$ 61.5 million and US$ 63.5 million.
The funding marks a significant shift from the financing model initiated during the previous Ranil Wickremesinghe administration, which had pursued the project through a loan arrangement. The conversion to a grant removes a future debt obligation while ensuring the strategic northern port remains a priority in Indo-Lankan economic cooperation.
Government officials say discussions are no longer focused on financing itself but on the structure through which the project will be implemented.
“The grant is there. The discussions now are on how it will be utilised, ownership arrangements, and the partnership framework,” Kodithuwakku explained.
According to officials, the project will ultimately be implemented as a joint venture involving the Sri Lanka Ports Authority (SLPA) and an entity nominated by the Government of India.
Much of the technical groundwork has already been completed. Earlier dredging increased the turning basin depth to between eight and 8.5 metres, allowing light cargo vessels and passenger ferries to operate. The Nagapattinam-KKS ferry service continues to connect northern Sri Lanka with southern India, strengthening tourism and cross-border travel while demonstrating the port’s operational potential.
Once the MoU is signed, work is expected to begin immediately on constructing a new breakwater, deepening the commercial harbour basin for larger vessels, rebuilding piers, expanding road access and developing approximately 50 acres of cargo handling facilities capable of accommodating commercial freight and cruise tourism.
The prolonged negotiations nevertheless underline the complexities of foreign-funded strategic infrastructure projects, where legal safeguards, ownership arrangements and geopolitical considerations often prove as decisive as engineering.
With only the final signatures remaining, the future of KKS Port now depends less on construction readiness than on the successful conclusion of diplomatic negotiations that have spanned successive governments.
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