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Govt. turns to India for KKS Port project loan

2013-04-04 02:02:53
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The government will raise a loan of USD 44.3 million from India for the development of the Kankesanturai Port for commercial operations, Daily Mirror learns.

The port, located in the northern-most part of the country, could not be operated fully for decades due to damages sustained during the war.

There were also wrecks of vessels destroyed due to bomb attacks at the time. After the war was over in May, 2009, India pledged to assist in the restoration of the port for commercial activities which was agreed upon during President Mahinda Rajapaksa’s visit to India in June 2010.   

The Memorandum of Understanding (MoU) and an Agreement to formalise this commitment were signed on July 21, 2011 between India and Sri Lanka.  
The Indian High Commission said the Kankesanturai Harbour project would be aided by a mix of grant funding and concessional credit from the Indian Government.  India initially committed approximately USD 20 million for three initial elements, consisting of the preliminary hydrographic survey, geotechnical investigations and the detailed project report preparation and wreck removal and salvage.

 Besides, Dredging Corporation of India Ltd would undertake the second phase of dredging today.

Additionally, the Indian Government would provide additional grant funding for the dredging of the harbour and concessional credit for the rehabilitation of the breakwater and construction of a new pier and attendant port facilities.

An official of the Ports Development Ministry said the loan would be raised for the rehabilitation of the breakwater and the construction of a pier and other attendant facilities.  India has given a USD 850 line of credit for the reconstruction of northern railway lines.

“We have decided to get this loan. The interest rate is being negotiated. We believe it will be a concessionary loan,” he said.

The Indian authorities have already completed wreck removal. Once it is commissioned, Sri Lanka already has one port constructed with financial assistance from China in Hambantota. (Kelum Bandara)


  Comments - 21

  • Muthu Thursday, 4 April 2013 02:14

    Some more commissions.

    Reply : 8       44

    nicky karunarathnara Thursday, 4 April 2013 02:34

    It is better to take cyanide pill rather than begging money from illiterate country like India. Remember what that Indian minister said in UNHRC sessions. And it should be memorize over and over again with disdain and loath. If India can utter such rubbish and damn lies after introducing terrorism to this country.

    Reply : 89       45

    Sadarana Thursday, 4 April 2013 07:43

    Please check other wanna be groups as they might through "KUNU BITTARA" (rotten eggs)

    Reply : 4       20

    Kit udugama Thursday, 4 April 2013 08:03

    Disgraceful !!!

    Reply : 5       22

    true Thursday, 4 April 2013 08:32

    First we scold them then we beg them....I'm used to it...

    Reply : 1       49

    Thomas Thursday, 4 April 2013 08:52

    Ask Pakistan & China for loans.

    Reply : 27       10

    Raj Thursday, 4 April 2013 10:48

    China had already said NO to loans

    Reply : 6       21

    raviraj Friday, 5 April 2013 10:14

    can't you do anything once on your own. Where is all the revenue collected going

    Reply : 0       1

    Nodrog Friday, 5 April 2013 12:04

    We got rid of the worst terrorist group....on our own!

    0       3

    thusith Thursday, 4 April 2013 10:07

    One day this country will be sold out to India or China

    Reply : 1       26

    MerwynSilva Friday, 5 April 2013 08:20

    Already half sold to China.

    Reply : 0       2

    ANTON Thursday, 4 April 2013 10:33

    WHY DON'T TAMILNADU PEOPLE OPPOSE THIS ?

    Reply : 6       16

    Sim Thursday, 4 April 2013 10:54

    North for India and south for China, we Sri Lankans to the Indian Ocean

    Reply : 1       34

    Kodithuwakkuarachchi Thursday, 4 April 2013 12:17

    Swiss banks are going to be happy.

    Reply : 1       19

    Jith Friday, 5 April 2013 04:58

    why do we have to go to India? China is a better friend.

    Reply : 3       1

    MerwynSilva Friday, 5 April 2013 08:23

    Hapanna beri atha lewa kanna hadanawa.

    Reply : 0       2

    raviraj Friday, 5 April 2013 10:13

    who ever gives you money is your friend

    Reply : 1       0

    Nodrog Friday, 5 April 2013 12:04

    Oh..... is that your policy?

    0       2

    MerwynSilva Friday, 5 April 2013 12:41

    Raviraj was born, studied and working in Sri Lanka, but is living in TN. He shows his true patriotism.

    1       1

    Nadi Karunaratne Friday, 5 April 2013 06:41

    Just another loan for a project that fails to generate significant revenue - the reckoning will come soon but by then the commissions will have been banked in Geneva and the Cayman Islands in shell companies owned by our so called patriots. How do they sleep at night?

    Reply : 0       3

    Steve Friday, 5 April 2013 15:48

    So, politician can make 70% of the 44 Million. Good deal. Is India stupid enough to give?

    Reply : 0       0

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