Sri Lanka and India today signed an agreement to provide Indian loan assistance of US$ 45.27 million (Rs. 6.9 billion) to upgrade the Kankasanthurai Harbor in Jaffna in the North.
Secretary, Ministry of Finance and Mass media Dr. R H S. Samaratunga on behalf of Sri Lanka and Managing Director of the Export- Import Bank of India Mr. David Rasquinha signed the agreement in New Delhi yesterday.
“Transforming promises into reality India extends additional financial assistance of LKR 6.9 billion to upgrade KKS Harbour in Sri Lanka. Agreement signed in New Delhi today,” the Indian High Commission in Colombo said in a Twitter post.
In July 2011 Sri Lanka and India signed a Memorandum of Understanding to develop the Kankasanthurai (KKS) port under an agreement the two countries had reached during the visit of former President Mahinda Rajapaksa to India in June 2010.
The Sri Lankan cabinet last May approved Prime Minister Ranil Wickremesinghe’s proposal to enter into a loan agreement with the Indian EXIM Bank for US$ 45.27 million to develop the harbor. The project will be handled by the Sri Lanka Ports Authority.
The development of the KKS harbor is expected to further enhance trade activities in the North.
The Government of India is the major development partner of Sri Lanka in South Asian region over 40 years since 1973. Presently Indian development assistance mainly focus on improvement of economic infrastructural facilities, livelihood development, education, healthcare, capacity building and economic renewal of Sri Lanka.