Ports and Air Services Opportunities

The newly elected government aims to develop Colombo-Katunayake and Hambantota Mattala air and seaports as commercial and passenger ports. 

We will also convert these locations into free ports to encourage local entrepreneurs and overseas channel investments into these areas. Foreign investors could explore investment opportunities in the following areas:

• The Port of Colombo is a national asset, and it must be upgraded to handle transshipment business volumes, thereby doubling the TEU capacity. Priority will be given to the East Terminal development project by our government. We will conduct a feasibility study to construct a new cross berth terminal between East Container Terminal and SAGT. The West Container Terminal, too, would be developed with private sector participation.
• They will also use rail transportation to its full potential for the transporting of containers, as this is important given that it would reduce the congestion around the city limits. A network of three Container Depots would be developed in Peliyagoda, Veyangoda, and Ratmalana immediately with the participation of the private sector.
•  Hambantota port is a state-owned asset and is regarded as a tactical asset. The intention was never to offer or lease the port for 99 years. The newly elected government will make it an urgency to revisit the already signed contract with the Chinese authority and explore ways as to how best we could bring about a win-win for the two countries.
• They will develop Hambantota port as a Worldwide, Industrial, and Services Port and establish facilities for regional companies to provide services such as Ship maintenance and repair, ship handling, etc., to cater to all vessels.
• All physical infrastructure requirements of the Hambantota Free Trade Zone will be provided by the government to facilitate the commencement of operations.
•  The government will develop Kankasanthurai and Trincomalee ports according to the requirements of each region and to facilitate the needs of national economic corridors.
•  The government will develop the second runway and passenger terminal without any further delay. A new Domestic passenger terminal will be designed to facilitate internal/ domestic flights.
•  They will upgrade Mattala airport facilities while adding a new Taxiway and Cargo Terminal. We will also hold discussions with international airlines to commence commercial operations.
•  They will develop all other domestic airports and passenger terminals, enabling internal transportation, tourism, and movement of people. Coverage will also include Nuwara Eliya.

OSL Take: The focus of the government of Sri Lanka is on making the country a maritime hub in the Indian Ocean region. The latest achievements of the Colombo and Hambantota Ports indicate that the country is closing in on achieving the target. The port already has an industrial zone on the premises, which provides an ideal business space for companies engaged in exports and logistics.

All these developments would help Sri Lanka engage in trade activities with other countries. On the other hand, Sri Lanka could attract more cruise liners to the state by developing other harbors around the country and developing the required infrastructure facilities. Foreign businesses/investors should explore the increasing investment opportunities in Sri Lanka's ports and shipping sector.

VBS/AT/17122019/Z_TB1