KKS Port upgrade awaits Indian grant terms

• SLPA confirms renovations yet to begin  
• Final funding structure of Indian grant still being discussed
• Project estimated to take nearly 3 years once work begins
• Govt. aims to position KKS as a key northern commercial port

The proposed renovation and expansion of the Kankesanthurai (KKS) Port remains in limbo as Sri Lanka continues to negotiate with India regarding the specifics of the proposed financial grant to be offered by India. 

Speaking to The Sunday Morning Business, Sri Lanka Ports Authority (SLPA) Chairman Admiral (Retd) Sirimevan Ranasinghe revealed that renovations at the KKS Port were yet to begin, as Sri Lanka had not finalised the terms of the Memorandum of Understanding (MOU) to be signed between the parties as part of obtaining the Indian grant for the renovation and expansion of the KKS Port. 

The SLPA Chairman stated that the President had instructed that this process be expedited and completed as quickly as possible. However, he acknowledged that negotiations over the terms of the MOU were still ongoing.

“It is most likely going to be a grant, but they stated a set amount. If the expenses exceed that figure as per the agreement, the Government of Sri Lanka has to fund the balance,” he noted.

Ranasinghe further stated that they did not expect the expenses for the renovation to exceed the amount to be granted by India by a significant margin. 

However, he admitted that negotiations were underway to explore whether the funding arrangement with India could be realigned. Since discussions are still ongoing, he declined to provide any further specifics.

Ranasinghe nevertheless revealed that both parties were eager to commence the renovation process of the KKS Port as soon as possible, noting that the entire project was expected to take approximately two-and-a-half to three years to complete.

In 2020, the then Government decided to position the KKS Port as a main commercial port in Sri Lanka, announcing that the development of the port would be carried out using financial assistance from India. 

Sri Lanka’s Ministry of Finance and the Export-Import (Exim) Bank of India signed an agreement in this regard in January 2018.

Source: The morning