Port Revenue

Apr 02, 2010 (LBO) – A new port being built in southern Sri Lanka will face difficulties in the first few years in repaying loans taken from China to build it but should reach breakeven by 2015, a senior official said. “We intend repay the loans using revenue we get from Hambantota. We know the pressure we’re under and the revenue that can be generated. We have committed investors.”

Wickrama said local and foreign investors had shown interest in putting up a range of business in an industrial zone alongside the port from which it expects to earn revenue.

The SLPA will also earn revenue from sale of ship fuel and navigation dues at Hambantota, he said. Sri Lanka Ports Authority chairman Priyath Wickrama said the Hambantota port has a business plan to generate revenue to repay loans and would not be a burden on the authority.

“During the first three years we have some issues but after 2015 we should reach breakeven,” he told a forum organised by the Ceylon Association of Ships’ Agents.

He was responding to a question on whether the port, initially for bulk cargo, would be able to make enough money to repay 360 million dollars in loans from China’s Exim Bank taken to build it.

The port is being bu