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Government is to accelerate the construction of the first-ever regional port in the city of Galle in southern Sri Lanka. It is expected to act as a central hub, catering to all the shipping needs in the SAARC region. Galle was an important commercial port from the sixteenth century, when Portugal occupied much of Sri Lanka, and later under the Dutch. Following the improvement of the port of Colombo by the British during the 19th century, the prosperity of Galle declined. The project will cost Rs. 11 billion and is due to be completed in 2006. The Japanese Government will be funding the project with Rs. 8.87 billion and has assigned the task to the Japan International Cooperation Agency (JICA) to complete the civil construction work. The multi-purpose Terminal at the Galle Port is estimated to handle 158,000 discharged containers in 2005 and 205,000 discharged containers in 2010. The discharged conventional cargo is expected to increase from 1,384 million tons to 2,148 million tons.
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