{"id":154098,"date":"2026-01-11T16:02:24","date_gmt":"2026-01-11T23:02:24","guid":{"rendered":"https:\/\/www.lankaweb.com\/news\/items\/?p=154098"},"modified":"2026-01-11T16:02:24","modified_gmt":"2026-01-11T23:02:24","slug":"a-policy-paper-cabinet-edb-level-developing-sri-lanka-as-an-indian-ocean-marine-offshore-services-hub","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2026\/01\/11\/a-policy-paper-cabinet-edb-level-developing-sri-lanka-as-an-indian-ocean-marine-offshore-services-hub\/","title":{"rendered":"A. POLICY PAPER (CABINET \/ EDB Level\u00a0) Developing Sri Lanka as an Indian Ocean Marine & Offshore Services Hub"},"content":{"rendered":"

Dr. Sarath Obeysekera\u00a0<\/em><\/span><\/h2>\n\n\n

Lessons from Hambantota and the Way Forward<\/h3>\n\n\n\n
\n\n\n\n

1. Executive Summary<\/h2>\n\n\n\n

Sri Lanka\u2019s strategic location along the East\u2013West international shipping route presents a unique opportunity to develop a high-value marine and offshore industrial economy, rather than relying solely on port-based logistics and transshipment activities.<\/p>\n\n\n\n

In 2015, a comprehensive proposal was submitted to develop a Hambantota Dockyard Project, aimed at ship repair, conversion, and offshore services. The proposal demonstrated strong technical, economic, and strategic merit. However, the absence of a national marine industrial policy and delays in institutional decision-making resulted in the opportunity not being realised in its intended form.<\/p>\n\n\n\n

This paper outlines:<\/p>\n\n\n\n

    \n
  • What the Hambantota Dockyard proposal achieved conceptually<\/li>\n\n\n\n
  • Why marine industry\u2013led development is superior to port-only models<\/li>\n\n\n\n
  • How Sri Lanka can still recover this opportunity through a national, multi-location marine & offshore strategy<\/li>\n<\/ul>\n\n\n\n

    2. Strategic Importance of Marine & Offshore Industries<\/h2>\n\n\n\n

    Ports generate value only when anchored to industry. Globally successful maritime hubs such as:<\/p>\n\n\n\n

      \n
    • Dubai (Drydocks World)<\/li>\n\n\n\n
    • Sohar (Oman)<\/li>\n\n\n\n
    • Singapore<\/li>\n<\/ul>\n\n\n\n

      derive the majority of their economic value from:<\/p>\n\n\n\n

        \n
      • Ship repair & conversion<\/li>\n\n\n\n
      • Offshore engineering<\/li>\n\n\n\n
      • Marine fabrication<\/li>\n\n\n\n
      • Skilled technical services<\/li>\n<\/ul>\n\n\n\n

        These sectors generate:<\/p>\n\n\n\n

          \n
        • Continuous foreign exchange earnings<\/li>\n\n\n\n
        • High-skilled employment<\/li>\n\n\n\n
        • Strong backward linkages (steel, welding, coatings, logistics)<\/li>\n<\/ul>\n\n\n\n

          3. The Hambantota Dockyard Proposal \u2013 What It Got Right (2015)<\/h2>\n\n\n\n

          The Hambantota Dockyard Project proposed in 2015 was industry-led, not asset-driven.<\/p>\n\n\n\n

          Key strengths:<\/h3>\n\n\n\n
            \n
          • Location: ~10 nautical miles from the main East\u2013West shipping lane<\/li>\n\n\n\n
          • Natural deep water suitable for 300,000 DWT class vessels<\/li>\n\n\n\n
          • Availability of ~50 hectares of contiguous industrial land<\/li>\n\n\n\n
          • Integrated connectivity (port, airport, highway, rail)<\/li>\n<\/ul>\n\n\n\n

            Proposed facilities:<\/h3>\n\n\n\n
              \n
            • 300,000 DWT dry dock<\/li>\n\n\n\n
            • Floating dock<\/li>\n\n\n\n
            • 1.5 km quay length with four berths<\/li>\n\n\n\n
            • Phased development:\n
                \n
              • Phase I: Ship repair & conversion<\/li>\n\n\n\n
              • Phase II: Shipbuilding and offshore works<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

                Economic impact:<\/h3>\n\n\n\n
                  \n
                • Approx. USD 400 million FDI<\/li>\n\n\n\n
                • ~3,000 direct skilled jobs<\/li>\n\n\n\n
                • Technology transfer and managerial expertise<\/li>\n\n\n\n
                • Development of a marine industrial cluster<\/li>\n<\/ul>\n\n\n\n

                  4. Why Hambantota Could Have Competed with Dubai<\/h2>\n\n\n\n

                  Dubai\u2019s maritime success was industry-first:<\/p>\n\n\n\n

                    \n
                  • Drydocks preceded large-scale port expansion<\/li>\n\n\n\n
                  • Offshore conversion created continuous demand<\/li>\n\n\n\n
                  • Marine clusters followed naturally<\/li>\n<\/ul>\n\n\n\n

                    Hambantota possessed:<\/p>\n\n\n\n

                      \n
                    • Comparable geographic advantage<\/li>\n\n\n\n
                    • Superior natural depth<\/li>\n\n\n\n
                    • Lower operating costs<\/li>\n\n\n\n
                    • Immediate access to South Asian and Indian Ocean fleets<\/li>\n<\/ul>\n\n\n\n

                      The key difference was policy sequencing, not feasibility.<\/p>\n\n\n\n

                      5. Lessons Learned (Policy-Safe Analysis)<\/h2>\n\n\n\n

                      Without assigning blame, the following structural gaps are evident:<\/p>\n\n\n\n

                        \n
                      • Absence of a unified National Marine & Offshore Industry Policy<\/li>\n\n\n\n
                      • Overemphasis on port asset utilisation rather than industrial value creation<\/li>\n\n\n\n
                      • Fragmented institutional responsibility across ministries<\/li>\n\n\n\n
                      • Slow investment facilitation mechanisms for complex marine projects<\/li>\n<\/ul>\n\n\n\n

                        6. Why the Opportunity Still Exists (2026 Outlook)<\/h2>\n\n\n\n
                          \n
                        • Global fleet ageing \u2192 increased repair and conversion demand<\/li>\n\n\n\n
                        • Congestion and rising costs in traditional hubs<\/li>\n\n\n\n
                        • Growth in green retrofits, ballast water systems, scrubbers<\/li>\n\n\n\n
                        • Sri Lanka\u2019s existing but underutilised marine skill base<\/li>\n<\/ul>\n\n\n\n

                          7. Recommended National Strategy<\/h2>\n\n\n\n

                          A Tiered Marine Industry Development Model<\/h3>\n\n\n\n

                          Tier 1 \u2013 Trincomalee<\/p>\n\n\n\n

                            \n
                          • Heavy ship repair<\/li>\n\n\n\n
                          • Offshore structures<\/li>\n\n\n\n
                          • Floating and semi-submersible docks<\/li>\n<\/ul>\n\n\n\n

                            Tier 2 \u2013 Hambantota<\/p>\n\n\n\n

                              \n
                            • Large-vessel repair & conversion<\/li>\n\n\n\n
                            • Offshore maintenance<\/li>\n\n\n\n
                            • Green ship retrofit hub<\/li>\n<\/ul>\n\n\n\n

                              Tier 3 \u2013 Modera \/ Galle \/ Beruwala<\/p>\n\n\n\n

                                \n
                              • Yacht and leisure craft MRO<\/li>\n\n\n\n
                              • Nautical tourism support services<\/li>\n<\/ul>\n\n\n\n

                                8. Implementation Framework<\/h2>\n\n\n\n
                                  \n
                                • PPP model with land lease (not port asset transfer)<\/li>\n\n\n\n
                                • Multiple international partners<\/li>\n\n\n\n
                                • EDB-led single-window facilitation<\/li>\n\n\n\n
                                • Vocational and engineering skill pipeline development<\/li>\n<\/ul>\n\n\n\n

                                  9. Conclusion<\/h2>\n\n\n\n

                                  Sri Lanka\u2019s future maritime competitiveness depends not on ports alone, but on industrial capability. The Hambantota Dockyard proposal offers a proven blueprint that can still be adapted and scaled nationally.<\/p>\n\n\n\n

                                  \n\n\n\n

                                  Prepared by:<\/p>\n\n\n\n

                                  Dr. Sarath Obeysekera <\/p>\n\n\n\n

                                  <\/p>\n","protected":false},"excerpt":{"rendered":"

                                  Dr. Sarath Obeysekera\u00a0 Lessons from Hambantota and the Way Forward 1. Executive Summary Sri Lanka\u2019s strategic location along the East\u2013West international shipping route presents a unique opportunity to develop a high-value marine and offshore industrial economy, rather than relying solely on port-based logistics and transshipment activities. In 2015, a comprehensive proposal was submitted to develop […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[116],"tags":[],"class_list":["post-154098","post","type-post","status-publish","format-standard","hentry","category-dr-sarath-obeysekera"],"_links":{"self":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/154098","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/comments?post=154098"}],"version-history":[{"count":1,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/154098\/revisions"}],"predecessor-version":[{"id":154099,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/154098\/revisions\/154099"}],"wp:attachment":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/media?parent=154098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/categories?post=154098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/tags?post=154098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}