With the inauguration of the water filling in the Hambantota Harbour basin, international ships will soon enter the southern Port making it Sri Lanka’s second international Port.

During the first phase of the project, construction was carried out in 43 hectares of land. Ships with a capacity of 100,000 DWT will be facilitated under the first phase.

In keeping with the pledge in Mahinda Chintana to take advantage of Sri Lanka's unique geographical location, the Government has taken steps to construct the southern harbour also called the Magampura Port.

It is significant that all preliminary activities of the project were completed within a very short period with the participation of local and international experts before the initial target date of 15th April 2011, the Ports Authority said.

It also stated that preliminary studies, data collection, feasibility studies, environmental impact assessment and detailed engineering designs etc were also completed within a very short time.

Hambantota is within 10 nautical miles of the world's busiest shipping lane. It is ideally located at the intersection of major international sea trading routes. Over 100 ships go pass Sri Lanka daily between Europe and the Far East, necessitating the carrying of a large quantity of fuel and supplies for the journey, which could be replaced by cargo if servicing is provided midway at Hambantota.

As a strategically situated maritime gateway to India (for transshipment container cargo), Hambantota is very well positioned. It is better located than any Indian port to act as transshipment centre, because of equi- distance to , and ability to serve both, the east and west coasts of India as well as Myanmar, Bangladesh, Pakistan, and smaller countries such as the Maldives. The natural depth along the coastline is ideally suited for the development of a deep water port.

Hambantota has an extensive land area for expansion and labour- related activities such as port related industries, warehousing and servicing. This is a unique feature that provides a distinct advantage over other port. Thus, Hambantota Port is considered to be one of the leading naval hubs in the world.

The Government of China is funding 85% through the EXIM Bank while the Ports Authority is funding 15% as per the contract. The cost for the Phase 1 of the project is US $ 360 million.

The main construction work of phase 1 was commenced on 15th January 2008 and the project duration was scheduled for 39 months.

The main construction work includes, construction of two breakwaters, excavation of the 17 m depth basin area, dredging of 210m wide entrance channel, construction of a service berth, a general purpose berth, an oil berth, roads and buildings.

The new harbour will cover a land area of 2000 hectares. All 450 families in the Karagan Levaya and surrounding areas affected by the construction of the Hambantota Port have been provided with financial assistance and lands as compensation.