In a move that strengthens Indo-Lanka ties, India has pledged to fully fund the renovation of Sri Lanka's Kankesanthurai Port, located in the country's Northern Province.
The announcement follows Sri Lanka's Cabinet decision to greenlight the project, which has been on hold due to cost concerns.
The USD 61.5 million grant will go towards refurbishing the 16-acre port, strategically located just 104 kilometres from India's Karaikal Port.
This proximity is expected to boost trade links, particularly with the direct passenger ferry service operating between Nagapattinam in India and Kankesanthurai near Jaffna.
The direct passenger ship service linking Nagapattinam in Tamil Nadu to Kankesanthurai port near Jaffna traverses a distance of 111 kilometres (60 nautical miles) in roughly three and a half hours.
A statement released on Tuesday highlighted the significance of the project, noting India's commitment to funding its entirety.
Citing delays attributed to discrepancies in estimated costs, the statement revealed that discussions with the Indian government explored alternative financing methods, including Public Private Partnership.
The project, initially approved by the cabinet on May 2, 2017, progressed with the approval for Project Management Consultant Services granted on December 18, 2019.
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