Sri Lanka and India signed a Memorandum of Understanding on Wednesday to develop the Kankasanthurai (KKS) port under an agreement the two countries had reached during the visit of President Mahinda Rajapaksa to India in June 2010.

During President Rajapaksa's visit it had been agreed in the Joint Declaration issued on the occasion that India would extend assistance for the rehabilitation of the Kankasanthurai Harbour among other infrastructure projects in the Northern Province
High Commissioner Ashok K. Kantha signed the agreement on behalf of Government of India while Secretary of the Ministry of Ports and Highways Mrs. Sujatha Cooray signed for Sri Lanka.

A press release issued by the Indian High Commission in Colombo said the Kankasanthurai Harbour project will be aided by a mix of grant funding and concessional credit from the Government of India.

While the total expenditure on the project will be determined by the Detailed Project Report (DPR) that will be prepared, the Government of India has already committed approximately $20 million (SLR 2.2 billion) for three initial elements, consisting of the preliminary hydrographic survey, geotechnical investigations and DPR preparation and wreck removal and salvage.

The Indian government has already committed 2.2 billion rupees (about US$ 20 million) for three initial steps, mainly for preliminary hydrographic survey, geotechnical investigations and DPR preparation and wreck removal and salvage.

Deputy Minister for Ports and Highways Rohitha Abeygunawardena has said that Sri Lanka will take up construction of the Quays and the breakwater and the work is expected to take about two years.

He has expressed the Sri Lankan government's appreciation for the assistance being provided for this important project by the Government of India.

At the ceremony, High Commissioner Kantha has remarked that restoration of physical infrastructure at the Harbour would contribute towards the Sri Lankan government's reconstruction efforts, promote normalcy in northern Sri Lanka by restoring traditional domestic and regional linkages and boost economic activity by encouraging trade.

The allied activities at the Harbour would also generate employment in the area.

Noting the key role played by the Ministry of Defence, the Ministry of Ports and Highways, the Ministry of External Affairs and the Sri Lanka Ports Authority, the High Commissioner has appreciated the strong support and cooperation extended by the Government of Sri Lanka at every stage of project formulation and preparation.