Sailors Bond

Sri Lanka Ports Authority is considering a dollar bond issue this year to fund the initial phase of the proposed Colombo South harbour project. Sri Lanka Ports Authority is considering a dollar bond issue this year to fund the initial phase of the proposed Colombo South harbour project. The port needs to raise over US$ 200 mn of its own with the Asian Development Bank putting up US$ 100 mn to build a 30 km breakwater South of the present Colombo port.

Ports Authority’s Chairman Dileepa Wijesundara on Thursday told the press that the port would look at raising its capital requirements on the strength of its balance sheet, which is currently being restructured.

The port operator’s asset base is currently valued at about US$ 600 mn, but officials estimate the true value at above US$ 1500 mn.

It is reliably understood that the Port has asked the ADB to guarantee the possible bond issue.

Sri Lankan authorities earlier this year also asked the donor bank to up its allocation for the breakwater to US$ 200 mn.

The government needs to raise US$ 400 mn for ground work, tug boats and a three kilometer breakwater calling on the p