By: Staff Writer
October 13, Colombo (LNW): The long-awaited Kankesanthurai (KKS) Port development project, initiated under the previous government, is again drawing attention as progress remains uneven despite renewed pledges of regional growth. Once envisioned as a northern maritime hub, the project was launched with a $60 million investment supported by India’s Exim Bank, aiming to transform KKS into a commercial port linking Sri Lanka to South India and regional trade networks.
According to the Sri Lanka Ports Authority (SLPA), nearly 70 percent of civil and dredging work has now been completed. The port’s basin has been deepened to 8.5 meters, enabling medium-sized cargo vessels to dock, while the reconstruction of three jetties is nearing final stages. The project’s second phase construction of a breakwater and modernization of storage yards has been delayed due to supply and funding constraints amid fiscal tightening.
Sources within the SLPA reveal that the initial feasibility studies projected KKS to handle 1.5 million metric tons of cargo annually within five years of completion. However, recent internal assessments suggest this target may fall short by nearly 30 percent, given the slower industrial recovery in Sri Lanka’s Northern Province and weaker domestic logistics linkages.
The port, once a naval base rendered inoperative during the civil conflict, has been a politically sensitive development priority. While the previous administration under the United National Party–led alliance positioned KKS as a “gateway to regional integration,” the new NPP government faces pressure to accelerate construction while ensuring transparency in foreign-funded projects.
Analysts point out that the project’s strategic proximity to India’s southern coastline makes it geopolitically significant. India has contributed over $45 million in grant and credit assistance, including dredging, breakwater construction, and navigational aid installations. Yet, the project’s operational model—whether under SLPA, a joint venture, or a public-private partnership—remains undecided, raising concerns about long-term sustainability.
Local business chambers in Jaffna argue that the port could stimulate agri-export trade, fisheries, and small-scale logistics, provided supporting road and warehousing infrastructure are built. However, delays in connecting the A9 highway logistics corridor and establishing customs facilities have left the project underutilized even as construction nears completion.
Environmental groups have also flagged concerns over dredging impacts and the absence of a transparent Environmental Impact Assessment (EIA) publication.
As of September 2025, project expenditure stands at Rs. 19.2 billion, with an estimated Rs. 7 billion still required for completion by mid-2026. While officials maintain optimism, insiders fear bureaucratic inertia and procurement disputes could stall the final phase.
For the Northern region, KKS port represents more than infrastructure—it symbolizes long-promised economic revival. But unless governance, transparency, and strategic planning improve, it risks becoming another incomplete monument of political ambition, rather than a functional maritime gateway to prosperity.