The Hindu Business Line : Sri Lanka to invest $1 b in Colombo port expansion

THE Sri Lankan Government plans to expand the Colombo port with an investment of $1 billion to annually handle over 4 million TEUs (twenty foot equivalent unit), according to Mr D. Ariyasinghe, Deputy Director General (Marketing), Board of Investment of Sri Lanka.

The proposed Colombo South Harbour project will be located west of the present South West breakwater on approximately 600 hectares. It will have 12 berths and a harbour basin area of 290 hectares. The development of phase one is to be carried out in two stages. The first stage involves basic infrastructure with public funds ($350 million) and the second involves other terminal facilities ($700 million) with private sector participation, according to information available on the Sri Lanka Ports Authority Web site.

According to Dr N. Samarappuli, Executive Director (Research), Board of Investment of Sri Lanka, negotiations are going on between India and Sri Lanka to expand the scope of free trade agreement (FTA) between the two countries.

The Comprehensive Economic Partnership Agreement (CEPA) to deepen and broaden the FTA will include three chapters — goods (trade in goods), services (trade in services) and investment (preferential treatment for investment), he said at a meeting organised by the India-ASEAN-Sri Lanka Chamber of Commerce and Industry.

A Joint Investment Promotion Committee will also be set up for CEPA to coordinate with business community. The committee will be co-chaired by the Joint Secretary, Department of Industrial Policy and Promotion and Chairman/Director General, Board of Investment, Sri Lanka. There will be a maximum of five representatives from Government and five from community of each country, he said.

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