Port Support

July 21, 2011 (LBO) - India is to provide Sri Lanka with grants and soft loans to rebuild Kankesanturai port in the northern Jaffna peninsula that was damaged during the ethnic war, under a deal signed Thursday.

India has already committed 20 million US dollars for the work which involves a hydrographic survey, wreck removal and dredging, along with rehabilitation of the breakwater and construction of a new pier and attendant port facilities, a High Commission statement said.

The agreement signed is part of the package of assistance India promised among other infrastructure projects in the Northern Province.

Indian High Commissioner Ashok K Kantha said the project would contribute towards reconstruction efforts, restore traditional domestic and regional linkages and give a fillip to economic activity by encouraging trade and generate employment.

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Total expenditure on the project will be determined by the 'Detailed Project Report’ (DPR) that is to be prepared.

But India has already committed about 20 million dollars (2.

2 billion rupees) for the preliminary hydrographic survey, geotechnical investigations and DPR preparation and wreck removal and salvage.

"In addition to this, the Gove