The Hambantota Bay is a potential harbour basin with more than 200 hectares protected by the Hambantota Headland on the West and bounded on the other sides by the salt plains and the Bundala bird sanctuary. It is also the only location in the Indian Ocean which can harbour 100 ships a day, with a water depth of 20 metres
The objectives of the Study was to conduct a full scale feasibility study consisting of the technical, financial, commercial, economic, social and environmental viability on the proposed seaport and to further determine the optimum financing structure for the project based on the Government of Sri Lanka financing the cost of the breakwater and associated costs of dredging if they do arise. The benefits accruing from the proposed venture will not only be limited to the south but will tremendously improve the economy of the whole island