The Sri Lanka Ports Authority will start operations of 82,000 tonne capacity fuel bunkering terminal of Hambantota port in September

The $130 million project contains eight tanks of bukering oil and six tanks of aviation fuel and LPG in the initial stage.

The ports authority had planned to open fully fledged bunkering facility in May.

"The delay was mainly because we wanted to operate it fully rather than opening it partially,", Priyath Wickrama, chairman of Sri Lanka Ports Authority told Reuters at a national economic forum in Colombo.

"We could have opened in May, but partially. First year there won't be any big impact on revenue in the first year as we are trying to give a concessionary rate to attract business."

Hambantota bunkering capacity could be expanded to 4 million metric tonnes if demand picks up. The bunkering operation is the only part of the port not open to external investment.

China Exim Bank has provided $77 million toward the cost of the terminal, which the ports authority will operate.

Hambantota, which opened in November, is set to be Sri Lanka's biggest port once completed and give the Indian Ocean country access to traffic on one of the world's biggest East-West shipping lanes, located a few kilometres off its southern coast.

Hambantota port project alone has already secured $1 billion in investment out of a $2.5 billion total ports investment, Ports Authority chairman said.

"We are now calling for a second round of request for proposals due to huge demand to invest in Hambantota port," he said.