Major economic development projeci in Sri Lanka - step I

Hombanthota port in proud of sri lanka.

 

Port of Hambantota is planned to develop as a Services and industrial port. Hambantota is one of the lowest per capita income regions in Sri Lanka. Thus, the construction of a Port in Hambantota will be an important catalyst for a major economic development in Sri Lanka and further it will reduce the prevailing higher unemployment percentage in the Hambantota region.

Total estimated construction cost of the Phase 1 of the project is US $ 361 million and out of which, 85% has been funded by the Ex-Im Bank of the People's Republic of China.

The main construction work of the phase I was officially commenced on 15^th January 2008 and the project duration is 39 months. The project is planned to be completed by 15^th April 2011.

The first vessel was ceremonially  berthed at Hambantota Port on 18th November this year. A number of foreign and local entrepreneurs have already expressed interest to invest in the business opportunities at the port.

In view of the deeper berths and location advantages at Hambantota, it may be possible to attract most of the port related industries. Since the maximum draft at Colombo is about 10m for general cargo vessels, manufactures may invest at Hambantota to get the advantage of “economies of scale.”