Sri Lanka will reclaim the position of the ‘Pearl of the Asian Silk Route’ after completing the Colombo Port Expansion Project (CPEP) in April 2012 at a cost of over USD 330 million.

Developing the port sector has been a priority in the Government’s development endeavours to make Sri Lanka a leading maritime centre in the South Asian region, the Ministry of Ports and Aviation said.

The CPEP will provide breakwater construction and harbour channel dredging to accommodate three 1,200m long terminals which will be constructed sequentially. Each terminal will consist of 400m long three berths and accommodate 2.4 million TEUs per year. The project includes the establishment of a new marine operations centre, relocation of a submarine oil pipeline, provision of navigational aids and construction of shore utilities.

The harbour infrastructure work of the CPEP was initiated with a total estimated construction cost of USD 330 million. The Asian Development Bank and the Sri Lanka Ports Authority jointly finance the project, contributing to 81.7 % and 18.3 % of the project respectively.

The CPEP construction work officially commenced on April 11, 2008 and is scheduled to be completed within 48 months.

The mega vessels which cannot access the Colombo port at present will be able to enter the new port, while the container handling capacity will be doubled.

The new port will reduce the time taken for import and export procedures, and increase competition between marine companies, leading to reduced shipping charges. It will also enable farmers to export their products to markets worldwide.

The direct employment stemming from these three terminals will be 4,000. Indirect employment will also increase significantly with the new port operations.