China's Exim to fund new Sri Lankan port

Colombo: The Sri Lankan government has announced that it has been approved for a 15-year loan to borrow $307m from China's Export-Import Bank to fund the construction of a new transhipment port in Hambantota loacated at the south part of the island. The port, which is designed to handle 20m containers annually, will also offer offshore facilities such as ship handling, water and fuel supplies and crew changes.

"There are about 200 ships sailing close to Hambantota on a daily basis," a cabinet spokesperson told the press. "With the development of this port we can bring more business to Sri Lanka."

The government is also looking for additional funds to develop a separate $400m expansion at the port of Colombo.  [18/10/07]