A regional think-tank in Asia has questioned the viability of the new port of Hambantota being built in the south of Sri Lanka.

"Hubs cannot be decreed into existence. Hubs emerge because the economics are right, and they disappear when the economics go wrong," said Rohan Samarajiva of the think tank, LIRNEasia.

He raised doubts about the port's ability to generate enough cargo to repay the loans that were taken out to pay for its construction.

In remarks quoted in Lankabusiness Online, he said the Sri Lankan government might try to force shippers to move container handling operations from Colombo to the new port but went on to caution that shippers would be reluctant to do anything that not make "business sense".

He also highlighted what he said were primitive rail and road links.

“Sri Lanka does not benefit by shifting business from Colombo to Humbantota. The national economy benefits only if Hambantota generates new business,” he claimed.

He suggested building an oil refinery at the port to be combined with the bunkering facilities already under construction.

Construction of the port of Hambantota began in early 2008, led by Chinese companies.

It is scheduled to be completed this year.

Hambantota Port hopes to be Sri Lanka's second largest port after Colombo. It will include a 310 metre bunkering berth, bunkering facilities and tank farm.