Harbour borrowings increase: Future plans revealed

June, 2, 2014

According to the strategic plans of the Sri Lanka Ports Authority (SLPA) it expects to increase the harbor related investments to USD 10 billion and is to create a group of skilled professionals to meet the increasing demand.

Furthermore, according to these plans it expects to handle 200 million tons of direct maritime cargo and increase the harbour’s income to over USD 01 billion.

While three terminals are to be constructed under the Colombo harbor expansion project, the first was commissioned last August.

This container terminal was constructed with an 85 percent investment from China Merchant Limited and 15 percent from the SLPA.

Due to the infrastructure facility developments of the Colombo harbour it had been able to attract nine prominent liner services, says the SLPA.

However, by end of 2013 the SLPA’s foreign borrowings had increased by 33 percent to Rs. 188 billion and the interests paid on them had increased by 155 percent to Rs. 5.75 billion. Meanwhile, local borrowings had increased by 32 percent to Rs. 7.2 billion.

Hence, it is essential for the SLPA to increase its future earnings to cover these expenses.