Oluvil Port, Sri Lanka’s ‘White Elephant’

by Arundathie Abeysinghe

Inaugurated in 2013, the port has long been out of use due to the build-up of sand dunes that block vessel access. The project was launched with a €46 million loan from Denmark, but it has caused severe environmental damage and the displacement of local residents.

Colombo (AsiaNews) – Inaugurated in 2013 with the aim of revitalising the local economy and attracting foreign investment, the port of Oluvil in Sri Lanka’s Eastern Province has become what many observers now call a "white elephant" – a foreign-funded development that has lain unused for over two decades and caused significant environmental and social harm.

The port has become inoperable due to the accumulation of sand dunes at its entrance, which prevent boats from entering. “The Sri Lanka Ports Authority is currently assessing the port and its viability,” Deputy Minister of Transport and Aviation Janitha Kodituwakku told the press.

The project was launched with a €46 million loan granted by Danish bank Nordea in late 2008. However, experts consider it one of many foreign-funded ventures in Sri Lanka that have been underutilised or entirely abandoned.

According to officials at the SLPA, the port had been constructed “with specific objectives in mind, including providing adequate port services for commercial vessels, supporting coastal operations, and improving regional maritime routes. One of the main goals was to attract investors to set up cement factories and fertiliser plants, encourage deep-sea fishing, and create employment opportunities.”

Covering an area of 52 acres, the project includes a commercial zone with a 330-metre quay and a depth of eight metres, along with a fisheries section with a 200-metre quay at a depth of three metres. To build the facility, the government expropriated land from villagers in Oluvil and Palamunai.

However, maritime logistics experts Nilanthi Samaradiwakara and Hemantha Mayadunne argue that “the port has never been used for commercial shipping and has caused severe sedimentation and coastal erosion.” Originally intended to serve the eastern region and promote offshore fishing, the port has instead had a devastating environmental impact.

“The port was not constructed properly, and that is what led to the current coastal erosion,” environmental scientist Ajantha Perera told AsiaNews. “This could all have been avoided if the Environmental Impact Assessment (EIA) had been properly followed.”

This view is echoed by K. Arulanantham, an oceanographer at the National Aquatic Resources Research and Development Agency: “A design flaw is the main cause of this abnormal marine erosion. The breakwaters were built vertically, blocking water flow and, consequently, sand movement. This has resulted in erosion to the north and sand accumulation at the port entrance. Rectifying this would require a completely new technical design and a massive amount of funding.”

In the meantime, as the port remains idle, the damage continues to worsen. Thousands of families have lost their land and livelihoods. Coastal erosion has particularly affected communities in the Ampara District – including Oluvil, Attappallam, Ninthavur, Karaithivu, Maalikaikadu and Sainthamaruthu – disrupting fishing, coconut farming, and other agricultural activities. Most residents of nearby villages have been forced to abandon their homes and seek temporary shelter elsewhere in the Eastern Province.

Even these emergency relocations pose further challenges: many children have not been admitted to schools in their new locations and have had to abandon their education.