India to extend $61.5mn support to Sri Lanka’s KKS Port: Reports
The decision was ratified during a cabinet meeting, sanctioning acceptance of India’s financial assistance to revamp the KKS Port in Jaffna.
This is as per media reports, which added initially intended to be funded through an Indian credit facility, the project encountered obstacles due to higher-than-anticipated costs assessed by consulting services.
Consequently, discussions ensued with the Indian government to explore alternative funding avenues.
Minister Bandula Gunawardena, serving as cabinet co-spokesman, disclosed that India, recognising the project’s importance, generously consented to cover the entire estimated renovation expenses for the KKS port.
Considering the project’s challenges, further talks were held with India to explore the potential of executing it through a public-private partnership (PPP) model.
The decision follows a communication from Sri Lanka’s Ports, Shipping, and Aviation Ministry in March, announcing India’s commitment to provide a $61.5 million grant for the full-scale development of the KKS port.
This pledge was conveyed during a meeting between Indian high commissioner Santosh Jha and Sri Lanka's Ports, Shipping, and Aviation minister Nimal Siripala De Silva.
The development project entails the construction of a new breakwater and dredging the port up to a depth of 30 meters to accommodate deep-draft vessels.
Originally approved on May 2, 2017, under Indian loan funds, the KKS port renovation project received subsequent approval for Project Management Consultant Services on December 18, 2019.
In discussions between Nimal Siripala De Silva and Santosh Jha, it was revealed that India also aims to enhance regional cooperation between the two nations and extend full support to attract more Indian tourists to Sri Lanka.
Fibre2Fashion News Desk (DR)
