Eastern Anchorage

May 05, 2008 (LBO) – Construction work on a new port in Oluvil on Sri Lanka's east coast is to start on Tuesday as part of government efforts to revive the region's economy, the Port Ministry said in a statement Monday. The main objective of the project is to develop a harbour with appropriate shore facilities to cater to general cargo vessels required to supply the current needs of the area, including costal passenger transport, it said.

The harbour, which would be expanded in future, would also cater to the current and projected requirements of the fishing industry and its shore-based services and industries.

Denmark is providing aid to build the port, in the Amparai district, the cost of which is 46.1 million euro.

Construction would be done by MT Hojgaard, a Danish contractor with which the Sri Lanka Ports Authority signed a Memorandum of Understanding in March 2008.

The Oluvil Port project development plan consists of a commercial port and a basin for fishing craft.

Two rubble mound breakwaters would enclose a total water area of around 16 hectares in the first stage of the project, of which 10 hectare would be used for commercial harbour activities and balance for fisheries activities.