India’s $61.5M Grant for Development of KKS Port, Sri Lanka

May 1, 2024

The Sri Lankan Cabinet has approved the renovation of the Kankesanthurai Port (KKS Port) in the Northern Province, with India agreeing to grant the entire estimated cost of the project, amounting to USD 61.5 million. The decision highlights India’s commitment to enhancing regional cooperation and supporting Sri Lanka’s infrastructure development.

About Location and Significance of KKS Port

The KKS Port, covering an area of approximately 16 acres, is located 104 km (56 nautical miles) from Karaikal Port in Puducherry, India.
A direct passenger ship service connects Nagapattinam in Tamil Nadu to the KKS Port, covering a distance of 111 km (60 nautical miles) in about 3.5 hours.
The port has the potential to boost socio-economic development and cultural relations between India and Sri Lanka, particularly in the northern region of the island nation.

Project Implementation and Delays

The project implementation had been delayed due to higher estimated costs provided by consulting service agencies compared to the available loan amount.
Further discussions were held between the Sri Lankan and Indian governments regarding the possibility of completing the project under the Public-Private Partnership Method.
The original cabinet approval for the project was given on May 2, 2017, and approval for offering Project Management Consultant Services was granted on December 18, 2019.

India’s Grant and Commitment

Recognizing the importance of the project, the Indian government has agreed to grant the entire estimated cost of USD 61.5 million.
This decision showcases India’s commitment to its “Neighbourhood First” policy and its role as a development aid partner for neighboring countries.
India has also designated Sri Lanka as the top travel destination for Indian tourists, aiming to enhance regional cooperation and people-to-people ties.

Additional Facts:

The KKS Port began operations as a commercial port in 1950, coinciding with the establishment of a cement factory in Kankesanthurai.
During the Sri Lankan civil war, the port was under the control of the Sri Lanka Navy.
The Sri Lankan government has finalized plans to utilize the KKS Port for passenger and cargo transportation between Sri Lanka and India, with an investment of SLR 400 million.
The port now features well-established security, customs, and immigration facilities, as well as state-of-the-art equipment to ensure smooth operations.
The ongoing development at the KKS Port is expected to herald a new era for the people of Sri Lanka’s Northern Province.

The project, once completed, is expected to boost socio-economic growth, cultural ties, and people-to-people connections between the two nations, particularly benefiting the northern region of Sri Lanka.

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