Sri Lanka borrows $300 million for Colombo port expansion
Sri Lanka has secured a $300 million loan from the Asian Development Bank (ADB) for its Colombo port expansion project.
Secretary to the Ministry of Finance and Planning Dr. P. B. Jayasundera says the project will be a partnership between the public and private sectors with total investment of more than $780 million.
The government will add $180 million to the $300 million borrowed from the ADB for its share of project funding. The rest of the investment will be from the private sector.
The expansion, scheduled to be completed in 2010, is part of Colombo's drive to become a regional hub.
Demand for shipping services at the port of Colombo has been increasing rapidly. The port handled 817,578 twenty-foot equivalent units (TEUs) in the first quarter of this year compared to 647,977 TEUs for the same period last year, a year-on-year growth of 26.2%.
The new infrastructure should reduce handling costs and shipping charges. Chairman of the Sri Lanka Ports Authority (SLPA) Saliya Wickramasuriya said tenders have been sought for the construction work, which is due to start in September.
Secretary to the Ministry of Finance and Planning Dr. P. B. Jayasundera says the project will be a partnership between the public and private sectors with total investment of more than $780 million.
The government will add $180 million to the $300 million borrowed from the ADB for its share of project funding. The rest of the investment will be from the private sector.
The expansion, scheduled to be completed in 2010, is part of Colombo's drive to become a regional hub.
Demand for shipping services at the port of Colombo has been increasing rapidly. The port handled 817,578 twenty-foot equivalent units (TEUs) in the first quarter of this year compared to 647,977 TEUs for the same period last year, a year-on-year growth of 26.2%.
The new infrastructure should reduce handling costs and shipping charges. Chairman of the Sri Lanka Ports Authority (SLPA) Saliya Wickramasuriya said tenders have been sought for the construction work, which is due to start in September.