The Colombo Port Expansion Project (CPEP) launched by the Government is in progress under the two phases.

Under phase one of the project, Harbour Infrastructure work such as the construction of the 6.83km length Breakwater and dredging the new harbour basin and the navigation channel as well as the re-routing of crude oil pipe line will be accomplished while the construction of terminals and other related services have been identified under phase two.

The total estimated cost of the construction of harbour Infrastructure work is US$ 330 million while the first South Container Terminal will be constructed under Built, Operate and Transfer (BOT) terms.

The Asian Development Bank and Sri Lanka Ports Authority jointly finance the project of infrastructure work. Construction work of the project officially commenced on April 11, 2008 and is scheduled to be completed within 48 months.

“The project would change the economic situation in Sri Lanka as a large number would invest here while employment opportunities would also be generated and overall progress is assessed at about 22%”, said Sri Lanka Ports Authority (SLPA) Chairman Dr. Priyath B. Wickrama.

Meanwhile, the selection of a port operator for the South Container Terminal is in process and it will also be completed at the completion of the Harbour Infrastructure works in April 2012.