A sizeable new shipping port has been launched in Sri Lanka and the country hopes it will enhance Colombo's reputation as a major global import/export hub.

The project has cost $500 million (£325.8 million) and it is now the largest port Sri Lanka has to offer.

Speaking to the Associated Press, president Mahinda Rajapakse said: "We want to capitalise on the geographic location of Sri Lanka and pass on the economic benefit to our people."

The island certainly profits from being so close to major trading hubs like China and India.

In fact, this particular project is 85 per cent owned by the state-run China Merchant Holdings International, with the remaining 15 per cent held by the Sri Lanka Ports Authority.

This is just one part of a wider programme aimed at increasing Colombo's handling capacity to more than 6.1 million containers a year.

Activity in the global sea cargo sector has fluctuated in recent years, but it seems the Middle East and Asia are performing better than most.