• Concerns raised by legal vetting regarding draft discussed with local stakeholders
• Govt. moots 51% controlling share; India to be offered 49% for a 30-year operation

The preparation of a draft Memorandum of Understanding (MOU) regarding the development of the Kankesanthurai (KKS) Port in Jaffna, and its proposed operation by an Indian-nominated entity, is coming to a close this month, with concerns raised by the Legal Draftsman being discussed amongst local State stakeholders, Minister of Ports and Civil Aviation Anura Karunathilaka told The Sunday Morning.  

“The legal department had put forward some concerns, and we discussed those with the relevant stakeholders, including the Ministry of Foreign Affairs, the Sri Lanka Ports Authority (SLPA), and others last week, and we plan to move forward with updating the draft. We believe we can update it by the end of next week. We will then consult the legal experts again with the completed draft and finalise the MOU,” Karunathilaka said.

According to him, the finalised version will then be submitted to the Indian Government for its input via diplomatic channels. Well-placed sources at the Ministry of Foreign Affairs said that the process was likely to be completed by the end of the month.

“Once we hear from the Indian Government about the draft MOU, we can appoint a committee made up of public officials from both countries to discuss concerns and see what can be adjusted. We will then update the MOU and resubmit it for legal vetting. Once approval is received, we will move to submit the MOU to the Cabinet of Ministers for approval,” Karunathilaka explained.

He added that under the current proposal drafted by Sri Lanka, the KKS Port would be operated for a period of 30 years by an Indian Government-nominated operator, with the SLPA holding a controlling stake of 51% and the other party 49%. 

India had offered approximately $ 60 million in grant assistance for the development of KKS and had sought to operate it for 30 years under an agreement.