Mar 02, Colombo: The Sri Lankan government has received approval to set up a plant for production of polyethylene terephthalate (PET) in the fast-developing southern commercial hub of Hambantota.

The construction works of the first phase of Hambantota Port Development Project have been completed as scheduled, the government says.

A Business Plan prepared by the Sri Lanka Ports Authority has identified the business ventures that could be undertaken under Phase I of the Project and setting up of a plant to manufacture PET is one of the business ventures.

Cabinet Appointed Negotiating Committee (CANC) has recently recommended awarding the contract for the operation of PET manufacturing plant for a period of 25 years and to lease out 5 hectares of land to a consortium of investors promoted by the Singapore-based Peak Energy Ltd at an envisaged investment of US$ 150 million.

The cabinet has granted approval to a proposal on the plant put forward by the President in his capacity as the Minister of Ports and Highways.

When completed by late this year, the plant is expected to handle business worth of US$ 1 billion.

The Government is developing Hambantota as a commercial hub with a harbor, an international airport and industrial parks to attract investors.

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