• Indian conditions for same being discussed by bilateral authorities 
• Ports Authority socio-econ. impact study underway 

In the wake of reports that the Government is yet to finalise the $ 62 million Indian grant for the development of the Kankesanthurai (KKS) Port, the Ports Ministry stated that discussions are still underway regarding the conditions put forward by the Indian Government to convert the sum from a loan to a grant.

Speaking to The Daily Morning, Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku said that although India had offered over $ 62 million for the development of the Northern Port, the amount remains classified as a loan at present. 

“For it to be made a grant, a certain number of conditions have been put forward by the Indian Government. Those conditions are still being discussed,” he said.

He added that a socio-economic impact study has also been initiated to assess the implications of developing the said Port, and that the Sri Lanka Ports Authority is currently conducting the study. 

“When a port is to be established, we should look at its socio-economic impact. When that is finalised, we will initiate the necessary negotiations and go forward accordingly,” he said.

India first offered the $ 62 million grant for the KKS Port project during the tenure of the previous Government, as part of its efforts to boost regional connectivity. The offer was later renewed under the current administration led by President Anura Kumara Dissanayake. However, it was reported recently that the Government has yet to make a final decision on whether to proceed with the project.

The KKS Port spans an area of approximately 16 acres. The Port has a long history dating back to 1950, when it began operating as a commercial Port alongside the KKS Cement Factory. During the years of the conflict, it came under the control of the Navy, and is considered to be vital for Sri Lanka’s national interests.