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Sri Lanka Navy Journal 65

Table 2: SWOT Analysis
STRENGTHS WEAKNESSES

• Strategic geographical location • Low capacity utilization.
compared to other ports in the region. • Slow business development.

• One hour deviation from the main • Capital intensity.
sea line. • Insufficient port infrastructure.
• Good traffic position. • Weak marketing strategy.

• Management of CMPort. • Insufficient own resources for
• Transhipment centre. investment.
• Special economic zone. • Limited supply of logistics services
• Port services. in port area.
• Favourable climate. • Infrastructure incompatibility.

• Highway and airport connectivity. • Size of Sri Lankan economy.
• Natural depth along coastline.
• State interest for expansion.
OPPORTUNITY THREATS

• Emerging Markets. • Competition from other ports.
• Containerization of cargo. • Global economic slowdown due to
• Infrastructure flexibility. impacts from coronavirus, extreme
• Logistics cities surrounding the port. weather, and terrorism.

• Benefits BRI strategy. • Diplomacy in IOR.
• Regionalization of supply chains. • Piracy, smuggling and drug
• Eco-footprint philosophy. trafficking.
• New industrial clusters. • Maritime pollution.

• Non-allied foreign policy of
government.

Source: Author

Discussion

Constructing a port in Hambantota showed a lot of potentials to attract ships
passing the area. But, when the objective was materialised, it has been a
failure to meet the initial expectations of the Sri Lankan government; even
though, there is a gradual rise of ships visiting Hambantota. However, the
generated income was not sufficient and was incurring a loss. As a result, the
port was leased to China for 99 years.

A solid business strategy has to be formulated to uplift the performances of