Slow port development is the threat to the local economy, not Sethusamudram, say local ship agents. Slow port development is the threat to the local economy, not Sethusamudram, say local ship agents. “Sethusamudram is not a threat to the Colombo port, if the Colombo South port, behind SAGT, is ready by 2009,” said Chairman of the Ceylon Ship Agents, A V Rajendra at a seminar by the Coconut Product Traders Association.
The Sethusamudram project is a shipping canal that India is building by cutting through Adam’s Bridge and parts of the Palk Bay north of Sri Lanka.
The canal will allow ships to access the east coast of India without going round Sri Lanka.
The project is causing concerns in Sri Lanka because of possible environmental impacts and economic losses due to reduced transhipment handling.
But local ship agents say any threat to Sri Lanka’s economy will not be because India started its canal project but because Sri Lanka delayed its port development projects.
Because of delaying port development plans, Sri Lankan ports are getting outdated fast.