Increased Float

The ADB has agreed to increase its component in funding the US$ 400 mn initial phase of the South Harbour project to US$ 150 mn. The ADB has agreed to increase its component in funding the US$ 400 mn initial phase of the South Harbour project to US$ 150 mn. The increase corresponds to a plea by the government to increase the donor agency’s contribution from US$ 100 mn.

ADB officials said the allocation was not final, but had in principal increased their consideration for the south port project.

In return the port will clean up its accounts and raise the balance needed to fund the 3 kilometer breakwater and other initial infrastructure through a bond issue.

The ADB, under a financial market development project is currently studying the viability of raising debt on the ports balance sheet.

The Port meanwhile was to appoint an accounting firm in late June to restructure its balance sheets and revaluate its assets.

The Minister of Port and Aviation Mangala Samaraweera told the press in May that the Sri Lanka Ports Authority’s assets were grossly undervalued, with the balance sheet carrying the carrying va