Ports and Aviation
The government invested Rs 5300 mn in the Ports and Aviation sector in 2005 and this amount has increased to Rs 8003 mn in 2008. This is an increase of 51 percent.
Ports Development
Hambantota was one of the most underprivileged areas in Sri Lanka with the least development taking place. This led to youth frustration paving the way for two insurgencies, causing property damage to the tune of billions of rupees and also tarnishing Sri Lanka's image in the eyes of the international community. The Hambantota Port will in time to come service all sea traffic in the Indian Ocean.
The project is financed by concessionary loans from the Chinese government and the construction is being undertaken by a number of Chinese firms. The Chinese Harbour Engineering Company and the Sino Hydro Corporation are contracted to complete the port while China’s Exim bank is providing the line of credit that will fund the project.The port will, upon completion, generate enough revenue to recover the cost of the government’s initial investment.
The first phase of Hambantota Port project is scheduled to be completed in three years and three months. A sum of US$ 360 million will cost the first phase including two small break-waters, a cargo terminal and an oil and gas terminal. The port will have a 17 meter draft when completed and be able to accommodate the largest ships. 1,115 hectares acquired by the government for this project will displace around 450 families who be compensated for having to relocate.
The port will be able to handle 20 million containers in its 11km of berths a year compared to the present one which can handle only 4 million containers a year. There is also a gas-fired power plant and a petroleum storage facility planned within the complex, and will be equipped with shipbuilding capacity and repair yards nearby as well.
The Colombo South Harbour Development Project, another venture earlier confined to rhetoric, has no got off the ground while the Galle Harbour is to be developed to facilitate tourism. The finger pier would be ready by early next year bringing unprecedented business to hotels and cottage industries in the area.
Fisheries harbours such as the one at Oluvil have also been commissioned, giving a boost to the fisheries industry in these areas
Mattala International Airport
The development of the Hambantota Port is being accompanied by the construction of a new international airport in the district, the Mattala International Airport, with both facilities expected to bring unprecedented prosperity to Hambantota. A second international airport was a long felt need and various Governments had plans to build one, but lacked the will to implement them. This new airport is expected to facilitate the expansion and development of the tourist industry.
