Hambantota, Chittagong ports tie up

The Hambantota Port is providing direct connectivity with the Chittagong Port in Bangladesh. Sri Lanka is looking to establish new shipping links with several ports in the region, Deputy Minister of Ports and Aviation Rohitha Abeygunawardena said.

"This port lies across an important trade artery that links the Middle East with the Asia-Pacific region," he told Khabar South Asia. "A lot of trade takes place along this shipping lane. We are planning to do inner-harbour and offshore bunkering for ships."

"Sri Lanka will develop better trade relations with the countries that cover this shipping lane, particularly Bangladesh and China," Abeygunawardena said. In a joint statement issued after President Mahinda Rajapaksa's State visit with Bangladesh Prime Minister Sheikh Hasina last year, both sides agreed that bilateral trade was far below its potential and did not reflect their cordial diplomatic relations.

According to Sri Lanka's Department of Commerce, the total trade volume between the two countries stood at $70.69 million last year. Total imports from Bangladesh increased from $12.60 million in 2010 to $24.35 million the following year, while exports grew from $35.54 million to $46.34 million during the same period.

"Bangladesh is a huge market to be explored, now that the Hambantota Port is to be linked with Chittagong for shipping between the two countries," the Director General of the Department of Commerce, P.D. Fernando, told Khabar.

A leading tea exporter in Sri Lanka, Niraj de Mel, said that while 'Ceylon Tea' is not currently popular in Bangladesh, the situation could well change. "If our tea is made available to Bangladeshi people at affordable prices, they will buy it," he said.

Meanwhile, Sri Lanka is looking ahead to phase two of the Hambantota Port construction.

"The second phase will provide a strong supplementary port to the Colombo Port and support Sri Lanka to consolidate its status as a transshipment hub in the South Asian region," Cabinet spokesman Keheliya Rambukwella said. Sri Lanka plans a glittering new port city, a $15 billion investment, in the former fishing hamlet of Hambantota.

"Companies from countries such as India, Pakistan and Australia have agreed to invest in the Hambantota area because of the port. Then, the port will be commercially viable," SLPA Chairman Priyath Bandu said.