India and Sri Lanka have moved closer to finalising the agreements required for the development of Kankesanthurai (KKS) Port in northern Sri Lanka, following fresh discussions between officials from both countries on September 3.
The talks, held in Colombo under the leadership of Sri Lanka’s Minister of Energy, Ports and Civil Aviation Anura Karunathilaka, focused on outstanding issues in the proposed Memorandums of Understanding (MoUs). An Indian delegation led by Deputy High Commissioner Maitrey Kulkarni participated in the discussions. Both sides reached agreement on several matters and agreed to work towards completing the remaining issues.
$61.5 million Indian grant
India has committed a $61.5 million grant to support the development of KKS Port. The funding was originally associated with a financing arrangement, but India subsequently agreed to provide the required development assistance as a grant. India’s Ministry of External Affairs has confirmed that the MoU to formalise the grant remains under negotiation.
The project has faced delays over funding and the finalisation of its implementation framework. By August 2026, Sri Lankan officials said feasibility studies, design work and several technical decisions had already been completed, with the remaining process largely centred on finalising the MoU and related conditions.
Boost to maritime connectivity
The redevelopment is expected to improve passenger and cargo connectivity between India and northern Sri Lanka. KKS Port is located in Jaffna and is geographically well positioned for maritime links with southern India.
The port is already connected to India through the Nagapattinam–Kankesanthurai passenger ferry service, which resumed in 2023 after a gap of several decades. Upgrading KKS could provide stronger infrastructure for future ferry and cargo operations and enhance maritime links between Tamil Nadu and Sri Lanka’s Northern Province.
Port infrastructure to be upgraded
Earlier plans for the project included construction of a new breakwater and dredging works to accommodate larger, deeper-draft vessels. The development is also expected to improve port facilities and create better conditions for passenger and commercial maritime traffic.
Sri Lankan authorities have also proposed establishing a Joint Steering Committee and Technical Committee to oversee implementation once the agreements are finalised.
Final agreement expected soon
The latest discussions indicate that negotiations are moving towards completion. The Indian delegation is expected to report the progress to the Indian government and work towards securing a final decision at an early date. Sri Lankan authorities have indicated that the MoUs could be signed once the outstanding issues are resolved.
The KKS project forms part of the broader India-Sri Lanka effort to strengthen maritime, trade and people-to-people connectivity. For India, the port’s development could improve links with northern Sri Lanka and support greater regional economic integration, while Sri Lanka expects the investment to stimulate economic activity and create opportunities in the Northern Province.
With technical preparations substantially advanced, the focus is now on finalising the bilateral agreements and putting the $61.5 million Indian-funded port development project into implementation.