Sri Lanka is taking advantage of its key Indian Ocean location to boost infrastructure with foreign funds, the Central Bank Governor, Ajith Nivard Cabraal said.

The Governor said that Sri Lanka was targeting both Western investors and bilateral loans from emerging powers such as China and India.

The expanded port facilities would offer a range of services including refuelling and repairs to shipping, as well as making it a regional hub equipped to benefit from increased traffic to and from Asia's growing economies, he said in an interview with Reuters.

Airport, road and rail links will also be improved.

"The end of the conflict makes it easier for us to take advantage of our position," he said. "It is something foreign investors and countries are very aware of."

He said the end of the conflict had also opened up more of the country for investment, as well as allowing exploration for oil off the north coasts.

"The Chinese investment has taken the headlines but I think a larger amount of investment will still come from the West," he said, adding that 70 percent of buyers of the Eurobonds were Western.
However, he said that Sri Lanka would continue to look for new bilateral loans for individual projects such as the $300 million loan from Russia.

"We have had bilateral loans from Western countries at certain times but I think now they are more likely to come from other places," he said. "It all depends on who has the cash," he added.