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November Presidential polls could stall an already delayed south port project, making Sri Lanka’s port sector more vulnerable to regional competition. After a number of failed starts later, earlier this year port officials said they expected to construction of a new container ports south of the Colombo Post to commence by October 2005.
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The initial phase of the project is estimated at about US$ 400 million, with the ADB pitching in with US$ 150 million.
However, except for a possible additional US$ 50 million form the ADB, the government and port authorities are yet to make plans raise the balance of some US$ 200 million.
Officials say with the upcoming polls, the government is unlikely to make a decision on the port until December or early 2006.
A pilot project to assess the port’s feasibility to raise the required balance thought the debt market is also claimed to be stuck at the initial finding s stage, waiting for feedback from government policymakers.
Industry watchers say